Kathmandu: Amid escalating global trade tensions, US Secretary of State Marco Rubio has said that countries in Southeast Asia could receive “better tax rates than the rest of the world” as part of ongoing negotiations aimed at resolving the US-led trade war. His comments came during a key meeting of the Association of Southeast Asian Nations (ASEAN) in Kuala Lumpur, Malaysia.

Rubio’s visit follows President Donald Trump’s warning to impose punitive tariffs—ranging from 20 to 50 percent—on over 20 countries, including major Asian economies, unless trade deals are finalized by August 1.

“If everything goes as planned, many countries in Southeast Asia will actually have better tax rates than the rest of the world,” Rubio stated at the ASEAN forum.

He confirmed that negotiations are ongoing with almost every country present at the summit, and that further talks with Japan—a key ally and top trading partner—are scheduled for next week.

The Trump administration had previously suspended certain tax measures in April, but President Trump has now signaled that those measures will be reinstated under a new deadline. His administration has already announced a 50 percent tariff on copper and a potential 200 percent tariff on pharmaceuticals.

Countries expected to be hardest hit by the tariffs include Japan and South Korea, both facing a 25 percent tariff hike, while Indonesia, Laos, Thailand, Malaysia, the Philippines, Brunei, and Myanmar are likely to be slapped with tariffs ranging from 20 to 40 percent.

Amid the rising tensions, Vietnam and the UK have emerged as the only two countries to reach a tentative agreement with Washington so far, offering a glimmer of hope for other nations navigating the complex trade negotiations.

The ASEAN summit continues as regional leaders seek to protect their economies from the impact of the intensifying US trade policy.