US Strikes Trade Deals with Asia Pacific Nations, Easing Exporter Uncertainty

International News

Updated on 03 Nov 2025, 09:38 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

The United States has signed bilateral trade agreements with several Asia Pacific (APAC) countries, reducing uncertainty for exporters and potentially boosting their Gross Domestic Product (GDP). While India is yet to secure a deal, its tariffs are higher than those faced by many APAC nations. Key agreements include reduced tariffs on China and a pause on trade restrictions, expected to positively impact economic growth in China, Korea, and Vietnam. These deals also aim to strengthen supply chains and encourage investment in sectors like rare earth mining outside of China.

US Strikes Trade Deals with Asia Pacific Nations, Easing Exporter Uncertainty

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Detailed Coverage :

Fitch Ratings reports that new bilateral trade agreements between the United States and several Asia Pacific (APAC) countries are reducing exporter uncertainty and may boost their GDP growth. While India lacks a US deal and faces higher tariffs, agreements have been made with China, Japan, Korea, Vietnam, Malaysia, Thailand, Australia, and Cambodia.

A key development is the US halving its 20 percent fentanyl-related tariff on China, potentially reducing it by 10 percentage points. Trade restrictions, including China's rare earth export curbs and US licensing rules, are paused for one year.

Impact: These deals are expected to positively impact economic growth in China and the US (2026-2027). Korea and Vietnam may see growth from increased demand. Clarity on tariffs could boost investment in supply chains for countries like Malaysia, Thailand, and Vietnam, and support non-China rare earth mining.

Definitions: - Bilateral trade agreements: Formal pacts between two countries to facilitate trade. - APAC countries: Nations in the Asia-Pacific region. - Exporters: Businesses selling goods/services abroad. - GDP (Gross Domestic Product): Total value of goods/services produced domestically. - Tariff: Tax on imported goods. - Fentanyl-related US tariff: Tariffs linked to fentanyl trade. - Rare earth exports: Export of elements crucial for tech. - Supply chains: The network delivering goods from origin to consumer.

Rating: 6/10