Trump inks US deals on trade, critical minerals with Southeast Asian partners
Trump, who was in Kuala Lumpur to attend the Association of Southeast Asian Nations summit, signed bilateral trade agreements with his Thai, Malaysian and Cambodian counterparts that will see the countries work to address tariff and non-tariff barriers.
According to a joint statement issued by the White House, the United States will impose a 19% tariff rate on most exports from all three countries under the agreements.
Trump also signed agreements seeking U.S. cooperation with Thailand and Malaysia to diversify their critical mineral supply chains, amid rival efforts by Beijing in the fast-growing sector.
Reuters exclusively reported last month that China was in talks with Kuala Lumpur over rare earth processing, and Malaysia’s sovereign wealth fund Khazanah Nasional was expected to partner with a Chinese firm to build a refinery in Malaysia.
China, the world’s largest miner and processor of rare earths, has imposed increasingly stringent export controls on refining technology, prompting global manufacturers to seek alternative supplies for critical minerals widely used in semiconductor chips, electric vehicles and military equipment. Malaysia has agreed to refrain from imposing bans or quotas on exports of critical minerals or rare earths to the United States, the countries said Sunday. However, the statement did not specify whether Malaysia’s commitment applied to raw or processed rare earths. Malaysia, which has an estimated 16.1 million tonnes of rare earth reserves, has banned companies from exporting raw rare earths to prevent resource loss as it plans to develop its downstream sector.
The statement said that under the agreement, Kuala Lumpur also agreed to provide significant preferential market access for industrial goods and agricultural imports from the United States.
This includes chemicals, machinery and passenger vehicles, as well as products such as dairy and poultry. The statement said that Malaysia, which is Muslim-majority and known as the world leader in halal certification, has also agreed to regulate requirements for US products such as cosmetics and pharmaceuticals.
Meanwhile, both countries stated that Thailand will eliminate tariffs on approximately 99% of goods, including all U.S. industrial, food and agricultural products.
Thailand, Malaysia and Cambodia also pledged to protect workers’ rights and strengthen environmental protection in agreements.
The agreements were signed after Trump oversaw the signing of an enhanced ceasefire agreement between Thailand and Cambodia following deadly border clashes between the Southeast Asian neighbors earlier this year.
