During a recent trip to Asia, President Trump signed several trade agreements with key Asian partners, aimed at addressing trade imbalances and establishing alternative supply chains. These efforts come as China continues to tighten its grip on the export of rare earth minerals, vital components in many industries.
President Trump presided over the signing of a peace agreement between Cambodia and Thailand at the Association of Southeast Asian Nations (ASEAN) Summit. This agreement, the 13th ASEAN-United States Summit, followed earlier tensions between the two nations stemming from a border dispute.
“On behalf of the United States, I am proud to help resolve this conflict and forge a better future for the region,” President Trump stated at the signing ceremony, alongside Cambodian Prime Minister Hun Manet and Thai Prime Minister Anutin Charnvirakul.
Following the peace accord, President Trump signed separate trade agreements with Cambodia, Thailand, Malaysia, and Vietnam.
Under the terms of these agreements, Cambodia has eliminated all tariffs on American goods, while Thailand has committed to removing tariffs on 99% of U.S. products. The United States also entered into a similar agreement with Vietnam, retaining a 19% tariff.
“These historic agreements demonstrate that the United States can reduce trade deficits on goods while simultaneously opening new markets for American farmers, ranchers, workers, and manufacturers,” said U.S. Trade Representative Jamieson Greer. “I commend my counterparts in Malaysia, Cambodia, Thailand, and Vietnam for their cooperation and dedication to achieving a more balanced trade relationship with the United States.”
The United States also secured agreements with these nations concerning critical minerals, as the nation seeks to reduce its reliance on Chinese rare earth minerals.
China is a leading global miner, and its minerals are widely used in semiconductor chips, electric vehicles, and military equipment.
As part of the agreement, Malaysia has agreed to forego imposing quotas on the export of critical minerals or rare earths, granting the United States access to essential minerals.
While the Malaysian declaration did not specify whether it referred to raw or processed rare earths, the country possesses approximately 16.1 million tons of rare earth deposits.
The agreement grants the United States significant preferential access to chemicals, machinery, passenger vehicles, dairy products, and poultry, in exchange for American industrial and agricultural goods.
Thailand has agreed to establish tariff barriers for approximately 99% of products.
In their respective agreements, all three countries have also committed to strengthening environmental protections and labor rights.
Trade was also central to President Trump’s meeting with the President of Brazil and a later meeting with Chinese President Xi Jinping.
