President Donald Trump addresses during the ASEAN US Summit in Kuala Lumpur, Malaysia, Sunday, October 26, 2025.

Vincent Thian//AP POOL

hide title

toggle title

Vincent Thian//AP POOL

KUALA LUMPUR, Malaysia — A trade deal between the United States and China is nearing, officials from the world’s two largest economies said Sunday as they reached an initial consensus that President Donald Trump and Chinese leader Xi Jinping would try to finalize during their high-stakes meeting.

Any deal would be a relief to international markets even if it does not address underlying issues involving manufacturing imbalances and access to cutting-edge computer chips.

Beijing recently limited exports of rare earth elements needed for advanced technologies, and Trump responded by threatening additional tariffs on Chinese products. The prospect of escalating conflict risks weakening economic growth around the world.

China’s top trade negotiator, Li Chenggang, told reporters that the two sides had reached a “preliminary consensus”, while Trump’s Treasury secretary, Scott Bessent, said there was “a very successful framework”.

Trump also expressed confidence that a deal was close, saying the Chinese “want to make a deal and we want to make a deal.” The Republican president will meet Xi on Thursday in South Korea, the last stop on his Asia trip. Trump reiterated that he plans to visit China in the future and suggested that Xi could come to Washington or Mar-a-Lago, Trump’s private club in Florida.

Bessent said on CBS’ “Face the Nation” that the threat of higher tariffs on China was “effectively off the table.” In interviews on several U.S. news shows, he said talks with China produced initial agreements to prevent fentanyl precursor chemicals from entering the U.S., and that Beijing would make “substantial” purchases of soybeans and other agricultural products while postponing export controls on rare earths.

The move toward a possible deal came during the annual summit of the Association of Southeast Asian Nations in Kuala Lumpur, where Trump sought to burnish his reputation as an international negotiator.

However, his way of reaching agreements has meant serious disruptions at home and abroad. His taxes on imports have complicated relations with his trading partners, while the US government shutdown has him at odds with Democrats.

U.S. Treasury Secretary Scott Bessent reacts during a meeting between President Donald Trump and Brazilian President Luiz Inácio Lula da Silva on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia, Sunday, Oct. 26, 2025.

Mark Schiefelbein/AP

hide title

toggle title

Mark Schiefelbein/AP

Trump attends ceasefire ceremony between Thailand and Cambodia

At the summit, Thailand and Cambodia signed an expanded ceasefire agreement during a ceremony attended by Trump. His threats of economic pressure pushed the two nations to stop skirmishes along their disputed border earlier this year.

Thailand will release Cambodian prisoners and Cambodia will begin removing heavy artillery as part of the first phase of the deal. Regional observers will monitor the situation to ensure that fighting does not resume.

“We did something that a lot of people said couldn’t be done,” Trump said. Cambodian Prime Minister Hun Manet called it a “historic day,” and Thai Prime Minister Anutin Charnvirakul said the deal creates “the foundation for lasting peace.”

The president signed economic frameworks with Cambodia, Thailand and Malaysia, some of them aimed at increasing trade in critical minerals. The United States wants to rely less on China, which has used limited exports of key components in technology manufacturing as a bargaining chip in trade negotiations.

“It is very important that we cooperate as willing partners with each other to ensure that we can have smooth and secure supply chains, for quality of life, for our people and security,” said US Trade Representative Jamieson Greer.

President Donald Trump, center left, poses with other leaders during the U.S.-ASEAN Summit in Kuala Lumpur, Malaysia, Sunday, Oct. 26, 2025.

Vincent Thian/AP POOL

hide title

toggle title

Vincent Thian/AP POOL

Trump recommits to a key region of the world

Trump attended this summit only once during his first term, and US Defense Secretary Pete Hegseth appeared unfamiliar with ASEAN during his confirmation hearing in January.

This year’s event was an opportunity for Trump to reengage with nations that have a combined economy of $3.8 trillion and 680 million people.

“America is with you 100% and we intend to be a strong partner and friend for many generations to come,” Trump said. He called his counterparts “spectacular leaders” and stated that “everything you touch turns to gold.”

Trump’s tariff threats were credited with helping boost negotiations in Thailand and Cambodia. Some of the worst modern fighting between the two countries took place over five days in July, killing dozens and displacing hundreds of thousands of people.

At the time, the president threatened to suspend trade agreements unless the fighting stopped. An uneasy truce has persisted since then.

Malaysian Prime Minister Anwar Ibrahim praised the agreement between Thailand and Cambodia, telling the summit that it “reminds us that reconciliation is not a concession, but an act of courage.”

Tariffs are the focus of Trump’s trip

Trump met in Kuala Lumpur with Brazilian President Luiz Inácio Lula da Silva, who was also attending the summit. There has been friction between them over Brazil’s prosecution of Jair Bolsonaro, the country’s former president and a close Trump ally. Bolsonaro was convicted last month of trying to overturn the election results in his country.

During their meeting, Trump said he could reduce the tariffs on Brazil that he enacted in an effort to gain leniency for Bolsonaro.

“I think we should be able to reach good agreements for both countries,” he said.

While Trump was sympathetic to Lula, he avoided Canadian Prime Minister Mark Carney. The president is angry at Canada over a television ad protesting its trade policies, and on the way to the summit he announced on social media that he would raise tariffs on Canada for that reason.

One leader absent from the summit was Indian Prime Minister Narendra Modi. Although he was close with Trump during Trump’s first term, the relationship has been more strained lately. Trump caused irritation by boasting about resolving a recent conflict between India and Pakistan and raising tariffs on India for its purchase of Russian oil.