KUALA LUMPUR – The United States signed a series of trade and critical minerals agreements with four Southeast Asian nations on Sunday, seeking to rebalance trade ties and secure alternative supply chains amid China’s tightening export controls on rare earth elements.
President Donald Trump, attending the Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur, sealed reciprocal trade deals with Malaysia and Cambodia, alongside a framework trade pact with Thailand aimed at addressing tariff and non-tariff barriers. A similar framework agreement was also reached with Vietnam.
Under the new accords, the U.S. will maintain tariff rates of 19% on exports from Malaysia, Cambodia, and Thailand, with certain goods to enjoy zero-tariff access. Vietnam, currently facing a 20% levy on exports to the U.S., pledged to expand imports of American goods in a bid to reduce its record $123 billion trade surplus with Washington.
The agreements underscore Washington’s growing focus on mineral security. Trump also signed two landmark cooperation deals with Malaysia and Thailand to diversify sources of critical minerals, vital for semiconductor, electric vehicle, and defense industries, amid fierce competition with Beijing.
The push follows China’s new export curbs on refining technologies for rare earths, which have left global manufacturers grappling for alternative suppliers. Malaysia, holding an estimated 16.1 million tonnes of rare earth deposits, agreed not to impose export bans or quotas on critical minerals bound for the United States, though it remains unclear whether the pledge covers raw or processed materials.
During the summit, Trump also oversaw the signing of an enhanced ceasefire agreement between Thailand and Cambodia, following recent border clashes. All four ASEAN partners committed to broader economic cooperation, including digital trade, services, labour rights, and environmental protection. Thailand announced it would eliminate tariffs on nearly 99% of U.S. goods and open its telecommunications sector to increased American ownership.
Malaysia’s trade minister Tengku Zafrul Aziz confirmed his country obtained tariff exemptions for aerospace, pharmaceutical, and key commodity exports—including palm oil, cacao, and rubber. Thailand meanwhile disclosed plans for commercial purchases of U.S. agriculture goods worth about $2.6 billion annually, along with orders for 80 U.S. aircraft valued at $18.8 billion and energy imports estimated at $5.4 billion per year.
Viewed collectively, the deals represent Washington’s most comprehensive outreach to ASEAN economies in years, as President Trump seeks to strengthen supply chain resilience and strategic influence in a region increasingly shaped by China’s economic clout.