U.S. and China Signal Progress on Trade Deal ahead of Potential Trump-Xi Meeting
KUALA LUMPUR, Malaysia – As President Donald Trump attends the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur on Sunday, Oct. 26, 2025, signals emerge that the United States and China are drawing closer to a potential trade agreement. This growth marks a renewed effort by Trump to reengage with a key economic region, boasting a combined $3.8 trillion economy and 680 million people.
Trump’s attendance at the summit – his first since his initial term - comes amid shifting dynamics in the Indo-Pacific and questions about U.S. commitment to the region, highlighted by U.S. defense Secretary Pete Hegseth’s apparent unfamiliarity with ASEAN during his January confirmation hearing. “The United States is with you 100%, and we intend to be a strong partner and friend for many generations to come,” Trump stated, praising ASEAN leaders as “breathtaking” and claiming “everything you touch turns to gold.”
The potential for a trade deal with China is unfolding alongside other trade-related maneuvers by the Trump management. Trump indicated a willingness to reduce tariffs on Brazil in exchange for leniency for former Brazilian President Jair Bolsonaro, who was recently convicted of attempting to overturn election results. Conversely, Trump announced plans to raise tariffs on Canada in response to a television advertisement critical of his trade policies, actively avoiding Canadian Prime Minister Mark Carney at the summit.
Meanwhile, the relationship with India appears strained. Trump has drawn criticism for claiming credit for resolving a conflict between India and Pakistan and has increased tariffs on India due to its purchase of Russian oil. Indian Prime Minister Narendra Modi is absent from this year’s ASEAN summit.
Beyond bilateral trade talks, Trump’s tariff threats were reportedly instrumental in spurring negotiations between thailand and Cambodia, following deadly clashes in July that killed dozens and displaced hundreds of thousands. A truce has held since then, and Malaysian Prime Minister Anwar Ibrahim lauded the agreement as ”an act of courage,” emphasizing that “reconciliation is not concession.”
Vincent Thian/AP POOL
