U.S. Trade Agreements with Southeast Asia Raise Concerns Over Inequality and Domestic Impact

The U.S. has entered into bilateral trade agreements with Vietnam, Indonesia, and the Philippines in 2025, revealing notable asymmetries that have sparked domestic criticism. These accords impose significant tariffs on exports from these Southeast Asian nations while granting the United States duty-free access to critical import sectors. Critics argue that such disparities exacerbate income inequality, hinder industrial development, and burden small and medium-sized enterprises with compliance costs. Addressing these issues will require strategic investments in customs infrastructure, market diversification initiatives, and regional cooperation to promote fair and sustainable economic integration. In Vietnam, the agreement sets a 20% tariff on most Vietnamese exports to the U.S., increasing to 40% for goods suspected of transshipment, whereas Vietnam must eliminate tariffs on U.S. imports, including heavy vehicles. Domestic stakeholders highlight uncertainties around 'substantial transformation' criteria, which complicate compliance, and express concerns that zero tariffs for American automakers could undermine Vietnam's emerging automotive and metallurgical industries. Indonesia...