US President Donald Trump has approved a 0% tariff scheme for selected goods from Malaysia, Cambodia, and Thailand, a move formalised during the ASEAN Summit in Kuala Lumpur, DetikFinance reports. The three Southeast Asian nations had previously faced reciprocal tariffs of 19%. Under the new arrangement, a range of products will now enjoy duty-free access to the US market.

Malaysia’s Minister of Trade, Tengku Zafrul Aziz, said the tariff exemptions would cover aerospace equipment, pharmaceuticals, and key commodities such as palm oil, cocoa, and rubber. The deal is expected to significantly boost Malaysia’s export competitiveness and deepen its trade ties with Washington.

Indonesia also stands to gain, as it is currently negotiating a similar reciprocal tariff adjustment with the US, which has likewise stood at 19%. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that trade talks between the two countries had resumed following delays caused by the recent US government shutdown.

Airlangga noted that discussions are progressing well and could conclude within the next two to three weeks. “Talks will continue intensively this month, and we hope to finalise them soon,” he said earlier this month.

He added that Indonesia has a strong chance of securing 0% import duties on several of its major export commodities. “In principle, the agreement applies to products that can be cultivated in Indonesia but not in the US, and vice versa. So, for items such as palm oil, cocoa, and chocolate, they’re offering zero tariffs,” Airlangga explained.

The US trade concessions mark a major step in strengthening economic cooperation with Southeast Asia and are expected to encourage greater trade diversification across the region.