US, China reach preliminary trade deal for Trump and Xi to finalize
Brief:
The US and China move closer to a trade deal as Presidents Trump and Xi prepare to meet at the ASEAN Summit in Kuala Lumpur. The agreement could ease global tensions and boost market confidence.
KUALA LUMPUR, Malaysia — The United States and China said Sunday that a long-awaited trade deal is within reach. Officials from both nations confirmed a “preliminary consensus” ahead of a high-stakes meeting between President Donald Trump and Chinese leader Xi Jinping later this week.
Any agreement would calm global markets that have been strained by months of tariff threats and export controls. The deal may not solve deeper disputes over manufacturing or access to advanced semiconductor technology, but it marks a step toward easing tensions between the world’s two largest economies.
China’s top negotiator, Li Chenggang, said the two sides had reached a “preliminary consensus.” U.S. Treasury Secretary Scott Bessent described it as “a very successful framework.” Trump echoed their optimism, saying, “They want to make a deal, and we want to make a deal.” The two leaders are set to meet Thursday in South Korea, Trump’s final stop on his Asia tour.
Bessent said in a televised interview that higher tariffs on China were now “off the table.” He also revealed agreements on curbing shipments of fentanyl chemicals to the U.S. and on China’s plan to increase soybean and agricultural imports. Beijing is also expected to ease export limits on rare earth elements critical for high-tech manufacturing.
At the ASEAN Summit in Kuala Lumpur, Trump’s focus extended beyond China. He oversaw the signing of an expanded ceasefire between Thailand and Cambodia. Both nations agreed to release prisoners and withdraw artillery from contested border areas. “We did something that a lot of people said couldn’t be done,” Trump said. Cambodian Prime Minister Hun Manet called it “a historic day,” while Thai leader Anutin Charnvirakul said the pact “builds the foundation for lasting peace.”
Trump also signed trade frameworks with Malaysia, Thailand, and Cambodia, many centered on critical minerals. The U.S. aims to reduce its dependence on China for key raw materials used in technology and defense. “We must build secure supply chains for the safety and prosperity of our people,” said U.S. Trade Representative Jamieson Greer.
This summit marked Trump’s return to ASEAN after attending only once during his first term. The forum brings together 10 nations representing 680 million people and a combined $3.8 trillion economy. “The United States is with you 100%, and we will remain your strong partner,” Trump told regional leaders.
Tensions had flared earlier this year when Thailand and Cambodia engaged in border clashes that killed dozens and displaced thousands. Trump’s tariff threats reportedly pushed both nations to seek peace. Malaysian Prime Minister Anwar Ibrahim praised their accord, saying, “Reconciliation is not concession, but courage.”
On the sidelines, Trump met Brazilian President Luiz Inácio Lula da Silva and discussed easing tariffs. He hinted at a possible “good deal” benefiting both countries. Meanwhile, his strained relationship with Canadian Prime Minister Mark Carney worsened. Trump announced new tariffs on Canada over an ad criticizing his trade policies.
Indian Prime Minister Narendra Modi skipped the summit, highlighting growing friction between Washington and New Delhi. Relations have cooled since Trump claimed he mediated a conflict between India and Pakistan and imposed tariffs on Indian oil imports from Russia.
As Trump’s Asia trip concludes, hopes are rising that his Thursday meeting with Xi could reshape trade dynamics and calm financial markets awaiting clarity.
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