🔍 Why is Brunei being slapped with a 24% U.S. tariff—more than Singapore, Japan, or even Malaysia?
📉 We actually import more from the U.S. than we export—but still got hit harder. Something doesn’t add up.
🇧🇳 In my latest Kopi Talk with MHO, I investigate what’s really behind this trade shock, what it means for our small economy, and why Brunei must speak up on the global stage.
📰 Kopi Talk with MHO
By Malai Hassan Othman | Investigative Column Published: April 5, 2025
BANDAR SERI BEGAWAN – Brunei Darussalam is facing a significant economic challenge with a newly imposed 24% tariff on its exports to the United States.
For a small, open economy like ours, this is not just a numerical change - it represents a potential loss of confidence, credibility, and competitiveness.
This tariff is part of a broader directive by U.S. President Donald Trump, who has introduced what he refers to as a "reciprocal tariff regime."
While all countries face a minimum tariff of 10%, those with trade surpluses are subjected to higher rates.
To our dismay, Brunei has been placed in the 24% category.
To put this into perspective, even Singapore, a major export powerhouse, is only facing the standard 10%.
With our exports to the U.S. totalling a modest BND238.7 million last year, we are struggling under a disproportionately heavy burden.
The Confusing Numbers Game
How did we end up in this situation?
The U.S. administration justifies the new tariffs as “reciprocal” and based on trade deficits.
However, the numbers do not support this claim. In 2024, Brunei recorded a trade deficit with the U.S., importing more (BND298.4 million) than it exported.
This does not indicate a surplus. Thus, the question arises: are we being penalized based on outdated data, incorrect assumptions, or simply grouped with others?
Discussions on Reddit and other trade forums suggest that this approach is akin to punishing a neighbourhood grocery store because you spend more there than they spend on you. In essence, it’s a case of economics turned upside down.
Small Nation, Big Problems
For Bruneian exporters - especially those dealing in chemicals, fuels, and machinery - this tariff means an immediate challenge.
A 24% duty makes Brunei's products more expensive for American consumers, and in the competitive landscape of global trade, price is crucial.
According to the Ministry of Finance and Economy (MOFE), consultations with affected exporters are ongoing, and meetings with the U.S. embassy have been arranged to seek clarification.
However, behind closed doors, officials express confusion and frustration. “Even Singapore got hit with only 10%, while we received 24%,” a senior officer shared.
“Why?”
ASEAN Pushback, Brunei’s Dilemma
This issue extends beyond Brunei's borders. ASEAN countries are equally displeased.
Malaysia, as the chair for 2025, is organizing a special meeting of economic ministers to discuss a collective response.
Nations like Cambodia (49%), Vietnam (46%), and Thailand (36%) have faced even steeper tariffs.
Unlike Brunei, many of these countries are under scrutiny for allegedly serving as backdoors for Chinese exports - a charge that does not apply to us.
This raises another question: why are we categorised with them?
The hard truth is that size matters. Small economies like ours lack significant bargaining power.
Our voices in global trade forums often go unheard, and our dependency on larger partners like the U.S. exposes us to vulnerabilities.
A Silver Lining? Or a Wake-Up Call?
For now, MOFE is maintaining a composed response. Some officials view this as a hidden opportunity.
“We need to diversify and look beyond the U.S.,” stated one official.
This perspective is gaining traction. It’s not only about seeking new markets; it’s about becoming smarter, faster, and more resilient.
It’s crucial to understand the realities of global trade rather than merely reacting to them.
🟫 Kopi Talk Takeaway
Brunei may be small, but silence in global trade allows others to dictate our future. It’s time for us to speak up - clearly and strategically.
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