Published by Global Banking and Finance Review
Posted on October 26, 2025
By Trevor Hunnicutt and Rozanna Latiff
KUALA LUMPUR (Reuters) -U.S. President Donald Trump hit the ground running on the first leg of his Asian tour on Sunday, announcing a slew of trade agreements in Malaysia and joining the signing of an expanded truce between Thailand and Cambodia that he brokered in July.
Within six hours of landing in Kuala Lumpur for the summit of the Association of Southeast Asian Nations, Trump announced trade deals with four countries, met regional leaders and held talks with Brazilian President Luiz Inacio Lula da Silva, who said their teams would immediately start tariff discussions.
Trump also said he was confident of hammering out a deal with Chinese President Xi Jinping ahead of an expected meeting on Thursday, as top trade officials from both sides met for a second day in Kuala Lumpur and agreed on a framework for a trade agreement.
CAMBODIA-THAILAND CEASEFIRE
Top billing for Trump on Sunday was the signing of an agreement between Cambodia and Thailand, building on a ceasefire reached after he intervened to halt deadly border clashes, earning him a Nobel Peace Prize nomination by Cambodia.
At a ceremony with the Thai and Cambodian leaders against a backdrop covered in U.S. insignia and the words "Delivering Peace", Trump, who has touted himself as a global truce-broker, said the agreement demonstrated his administration's pursuit of peace "in every region where we can do it".
"My administration immediately began working to prevent the conflict from escalating," Trump said. "Everybody was sort of amazed that we got it done so quickly."
TALKS TO DEESCALATE TRADE WAR
On arriving in Malaysia, Trump was greeted by Malaysia's premier and a troupe of ceremonial dancers, stopping briefly on the red carpet to dance with performers.
As he mingled with other leaders, U.S. and Chinese negotiators met on the sidelines to avert further escalations in a trade war between the world's two largest economies.
U.S. negotiators said the meeting had built a "successful framework" ahead of expected talks between Trump and Chinese counterpart Xi in South Korea.
"I think we’re going to have a deal with China," Trump told reporters, while Beijing's top trade negotiator Li Chenggang said a preliminary consensus had been reached after "very intense consultations".
Both sides are looking to avert an escalation of their trade war after Trump threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China's expanded export controls on rare earths.
Within hours of landing in Malaysia, Trump and the White House had announced six trade agreements with four countries, some unexpected, including deals involving critical minerals with Thailand and Malaysia, amid competing efforts from Beijing in the rapidly growing sector.
Malaysia agreed to refrain from banning or imposing quotas on exports to the United States of critical minerals or rare earth elements, the countries said. They did not specify whether Malaysia's pledge applied to raw or processed rare earths.
Trump also announced detailed frameworks towards wider trade deals with Cambodia and Thailand while the White House said an agreement had been reached with Vietnam to allow exporters in both countries "unprecedented" access to each other's markets.
'UNITED STATES IS WITH YOU 100%'
The U.S. would maintain a tariff rate of 19% on most exports from Malaysia, Thailand and Cambodia, while a 20% rate on Vietnam will also be retained, the White House said. In all the agreements those tariffs could be eliminated on certain products.
Addressing leaders of one of the regions hardest hit by tariffs, Trump said: "Our message to the nations of Southeast Asia is that the United States is with you 100% and we intend to be a strong partner for many generations."
Brazil's Lula will aim to lower 50% tariffs imposed by Washington on Brazilian goods amid simmering trade tensions. In a post on X after meeting with Trump he said teams from both countries "will meet immediately to advance the search for solutions".
Speaking alongside Lula, Trump expressed confidence of making "some pretty good deals for both countries".
A meeting with Canadian Prime Minister Mark Carney was not on the cards after talks between the neighbours came to an abrupt end. Trump said on Saturday he was increasing tariffs on Canada by an additional 10% "above what they're paying now".
EAST TIMOR, ASEAN'S NEWEST MEMBER
Asia's youngest nation East Timor became the 11th member of the ASEAN bloc on Sunday after a 14-year wait, a landmark for a former Portuguese colony that won full independence in 2002 following an at-times bloody quarter-century occupation by neighbour Indonesia.
Also known as Timor-Leste, the country of 1.4 million people is among Asia's poorest and hopes to see gains from integrating its fledgling economy, which at about $2 billion represents only a tiny fraction of ASEAN's collective $3.8 trillion GDP.
"This is not only a dream realised, but a powerful affirmation of our journey," its Prime Minister Xanana Gusmao said.
(Reporting by Rozanna Latiff, Trevor Hunnicutt, Xinghui Kok and Danial Azhar in Kuala Lumpur; Yukin Zhang and Mei Mei Chu in Beijing, and Mikhail Flores, Eduardo Simoes; Editing by Kate Mayberry and Ros Russell)
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