Trump said US, China are close to trade deal before Xi talks, TikTok decision
US President Donald Trump looks on next to people waving the Malaysian national flag before departing on Air Force One from Kuala Lumpur International Airport in Sepang on October 27, 2025.
Andrew Caballero-Reynolds | AFP | Getty Images
US President Donald Trump said Washington and Beijing were ready to walk away from a trade deal ahead of his expected meeting with Chinese leader Xi Jinping.
Speaking on Air Force One en route from Malaysia to Japan, Trump said he could sign a final deal on TikTok as early as Thursday.
“I have a lot of respect for President Xi and we’re going to get out of the deal,” Trump said.
He began his whirlwind week-long Asia tour on Sunday with a flurry of trade deals and a peace deal aimed at strengthening his position before meeting Xi.
Trump signed during his first visit to Malaysia Independent Trade and Minerals Agreement Framework for trade agreements with its Malaysian and Cambodian counterparts, as well as with Thailand and Vietnam.
The four countries, part of an 11-member regional grouping called the Association of Southeast Asian Nations (ASEAN), pledged to eliminate trade barriers, provide preferential market access to US goods and increase purchases of US agriculture, energy products and aircraft.
They also agreed to cooperate with Washington on export controls, sanctions and access to critical minerals — a commitment that strengthens Trump’s role in a region dominated by Beijing’s growing influence.
Wendy Cutler, senior vice president of the Asia Society Policy Institute, said the agreement focused on “cooperation rather than hard commitments,” with many key points “much smaller” than previous US trade deals.
Cutler added, “The U.S. could impose tariffs or cancel the agreement if Malaysia is found to be in breach of its commitments.”
In Japan, Trump is expected to meet Prime Minister Sane Takaichi and the emperor before heading to South Korea. Asia-Pacific Economic Cooperation, or APEC, summit.
Chinese Premier Li Qiang, who traveled to Malaysia for the 28th China-ASEAN Summit, stopped over in Singapore, where he signed eight agreements. Trade and the digital economy.
Little details
But while diplomatic momentum appears strong, few details have been released about the scope of the new trade framework.
By agreement, Washington would Keep the 19% tariff rate Most exports from Malaysia, Cambodia and Thailand, while some products will face no tariffs, according to a joint statement from the White House.
Tariffs on Vietnam will remain at 20% and some goods will be eligible for duty-free entry, accordingly joint statement. Vietnam, which posted a trade surplus of $123 billion with the US last year, has also pledged to increase its purchases of US products to offset the trade imbalance.
Malaysia agreed not to impose Bans or quotas on US-bound exports To accelerate the development of critical minerals and rare-earth projects needed by American companies.
A sitting country Approximately 16.1 million tons Rare earth deposits, applied a Nationwide moratorium on exports of unprocessed rare earth materials Since last year to develop its downstream industries and prevent exploitation of resources.
Thailand will reduce tariff barriers By accepting some American-made vehicles, medical equipment and pharmaceuticals over American goods and importing ethanol for fuel. It has promised to relax foreign ownership restrictions for US investors in the telecommunications sector.
MUFG Bank economist Michael Wan said the contracts left open the possibility that additional production concessions could be decided later. He noted that regional tariffs on pharmaceuticals and electronics will remain important, as will questions over the legality of Trump’s use of the emergency powers law.
peace treaty
Aside from the trade deal, Trump announced the formalization of an extended ceasefire between Thailand and Cambodia, building on the truce he brokered in July after their violent border clashes this summer.
Trump, who has portrayed himself as a global peace broker, said the deal showed his administration “did something that a lot of people said couldn’t be done, and we probably saved millions of lives.”
“My administration began working immediately to prevent an escalation of the conflict,” Trump said. “Everyone was surprised that we got it done so quickly.”
Seoul meeting with Trump
As Trump mingled with other leaders, US and Chinese negotiators met on the sidelines of the ASEAN summit, where bilateral talks gained a framework ahead of an expected meeting between Trump and Xi in South Korea on Thursday.
“Markets are getting used to ‘punch-first, negotiate-second’ tariff overtures,” said John Woods, chief investment officer at Lombard Odier.
Chinese top trade negotiator Li Chenggang said on Sunday A preliminary agreement was reached “after very intense discussions” on several issues, including export controls, fentanyl and shipping charges.
The next step was for both sides to complete their domestic ratification process.
in Interview with CBS On Sunday, US Treasury Secretary Scott Besant said Trump’s threat of 100% tariffs was “effectively off the table” after two days of meetings with Chinese officials.
Talking to them separately ABC News’ “This Week,” Besant said the negotiations created an “important framework” that could ease concerns among American soybean farmers about China’s boycott.
China will buy more than half of US soybeans in 2023 and 2024, totaling nearly $12.8 billion in 2024. But Beijing halted purchases earlier this year after Trump ignited a trade war.
Besant also told ABC News that China should delay its rare earth export controls, which are set to go into effect next week, by a year. Besant added that Trump and Xi could “complete” a deal to allow TikTok to continue in the US.
“We believe both sides, after testing each other’s boundaries, will make concessions again,” said Ting Lu, China economist at Nomura, who expects the additional 100% tariffs on Chinese goods “will definitely not be implemented” as both sides are likely to extend the existing tariff truce.
In return, Lu added, Beijing could resume buying US soybeans and ease enforcement of its rare earth export controls.
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