U.S. President Donald Trump appears to be like on subsequent to folks waving Malaysian nationwide flags earlier than he departs on Air Pressure One from Kuala Lumpur Worldwide Airport in Sepang on Oct. 27, 2025.
Andrew Caballero-reynolds | Afp | Getty Pictures
U.S. President Donald Trump stated Monday that Washington and Beijing have been poised to “come away with” a commerce deal forward of his anticipated assembly with Chinese language chief Xi Jinping.
Talking aboard Air Pressure One en path to Japan from Malaysia, Trump added that he might signal a closing deal on TikTok as early as Thursday.
“I’ve a variety of respect for President Xi, and we’re going to come away with the deal,” Trump stated.
He started his whirlwind weeklong Asia journey on Sunday with a flurry of commerce offers and a peace settlement geared toward strengthening his place earlier than assembly Xi.
Throughout his first cease in Malaysia, Trump signed separate commerce and mineral agreements along with his Malaysian and Cambodian counterparts, in addition to frameworks for commerce pacts with Thailand and Vietnam.
The 4 nations, a part of an 11-member regional bloc known as the Affiliation of Southeast Asian Nations (ASEAN), pledged to take away commerce boundaries, present preferential market entry to U.S. items, and improve purchases of American agricultural, vitality merchandise, and plane.
In addition they agreed to cooperate with Washington on export controls, sanctions and entry to crucial minerals — commitments that seem to strengthen Trump’s standing in a area the place Beijing has a rising clout.
Wendy Cutler, senior vp at Asia Society Coverage Institute, stated that the agreements centered on “cooperation reasonably than arduous commitments,” with many essential factors “significantly shorter” than prior U.S. commerce agreements.
“The U.S. can impose tariffs or terminate the settlement if it considers Malaysia in violation of commitments,” Cutler added.
In Japan, Trump is predicted to fulfill Prime Minister Sanae Takaichi and the emperor earlier than flying to South Korea, capping the journey with a of the Asia-Pacific Financial Cooperation, or APEC, summit.
Chinese language Premier Li Qiang, who additionally flew in to Malaysia for the twenty eighth China-ASEAN Summit, stopped by Singapore, the place he witnessed the signing of eight agreements overlaying commerce and the digital financial system.
Scant particulars
Whereas the diplomatic momentum appeared robust, few particulars have been launched in regards to the scope of the brand new commerce frameworks.
Underneath the agreements, Washington will preserve a 19% tariff charge on most exports from Malaysia, Cambodia and Thailand, whereas some merchandise will face no duties, in response to joint statements from the White Home.
Tariffs on Vietnam will stay at 20% with some items eligible for duty-free entry, in response to the joint assertion. Vietnam, which recorded a commerce surplus of $123 billion with the U.S. final 12 months, additionally pledged to step up purchases of American merchandise to handle the commerce imbalance.
Malaysia agreed to not impose bans or quotas on U.S.-bound exports of crucial minerals and to hurry up improvement of its rare-earth tasks wanted by American firms.
The nation, which sits on an estimated 16.1 million tonnes of uncommon earth deposits, has enforced a nationwide moratorium on the export of unprocessed uncommon earth supplies since final 12 months to develop its downstream industries and stop useful resource exploitation.
Thailand will ease tariff boundaries on U.S. items by accepting some American-made autos, medical units and prescription drugs, and by importing ethanol for gas. It additionally pledged to loosen up overseas possession restrictions for U.S. buyers within the telecommunications sector.
The agreements left open the opportunity of extra product exemptions to be determined later, stated Michael Wan, economist at MUFG Financial institution. He famous that sectoral tariffs on prescription drugs and electronics would stay key, as would questions over the legality of Trump’s use of an emergency powers legislation to impose them.
Peace deal
Apart from commerce agreements, Trump introduced the formalization of an prolonged truce between Thailand and Cambodia, constructing on a ceasefire that he brokered in July following their violent border clashes this summer season.
Trump, who has solid himself as a worldwide peace dealer, stated the deal confirmed his administration has achieved “one thing that lots of people stated could not be achieved, and we saved perhaps thousands and thousands of lives.”
“My administration instantly started working to stop the battle from escalating,” Trump stated. “All people was form of amazed that we acquired it achieved so shortly.”
Trump-Xi Seoul assembly
As Trump mingled with different leaders in Malaysia, U.S. and Chinese language negotiators met on the sidelines of the ASEAN summit, the place the bilateral talks yielded a framework forward of an anticipated assembly between Trump and Xi in South Korea on Thursday.
“Markets are more and more getting used to a ‘punch-first, negotiate-second’ tariffs overture,” stated John Woods, chief funding officer at Lombard Odier.
Chinese language high commerce negotiator Li Chenggang stated Sunday {that a} preliminary consensus had been reached after “very intense discussions” on a variety of points, together with export controls, fentanyl and delivery charges.
The following step, he stated, was for either side to finish their home approval procedures.
In an interview with CBS on Sunday, U.S. Treasury Secretary Scott Bessent stated that Trump’s menace of 100% tariffs is “successfully off the desk” after a “excellent two-day assembly” with Chinese language officers.
Talking individually to ABC Information’ “This Week,” Bessent stated the negotiations produced a “substantial framework” that would ease issues amongst American soybean farmers over China’s boycott.
China purchased greater than half of U.S. soybeans in 2023 and 2024, accounting for almost $12.8 billion in 2024. However Beijing halted purchases earlier this 12 months after Trump ignited a commerce battle.
Bessent additionally instructed ABC Information that he anticipated China to delay its uncommon earth export controls, set to take impact within the coming weeks, by one 12 months. Trump and Xi might “consummate” a deal to permit TikTok to proceed to function within the U.S., Bessent added.
“We imagine either side, after testing the opposite’s boundaries, will seemingly make concessions once more,” stated Ting Lu, China economist at Nomura, who expects the extra 100% tariffs on Chinese language items will “absolutely not be carried out” with either side more likely to prolong the present tariff truce.
In return, Lu added, Beijing could resume purchases of U.S. soybeans and ease the enforcement of its uncommon earth export controls.