KUALA LUMPUR (Realist English). The United States signed a series of trade and critical minerals agreements with four Southeast Asian nations on Sunday, aiming to diversify supply chains and reduce dependence on China, which has tightened export controls on rare earth elements.
During his visit to Malaysia for the ASEAN summit, President Donald Trump concluded reciprocal trade deals with Malaysia and Cambodia, and a framework agreement with Thailand focused on removing tariff and non-tariff barriers. Washington also announced a similar framework with Vietnam, a key U.S. trading partner.
Under the new arrangements, the U.S. will maintain a 19% tariff on exports from Malaysia, Cambodia, and Thailand — with exemptions for selected goods — and a 20% tariff on Vietnamese exports, according to White House statements.
Vietnam, which ran a $123 billion trade surplus with the U.S. last year, pledged to increase imports of American products to help narrow the gap.
Securing critical minerals
Trump also signed two separate accords with Thailand and Malaysia to expand cooperation on critical minerals, as Washington seeks to build alternative supply networks for resources used in semiconductors, electric vehicles, and defense systems.
China, which dominates global rare earth mining and processing, has imposed strict controls on refining technologies — a move that has forced global manufacturers to seek new sources.
In a joint statement, Malaysia agreed not to impose bans or quotas on exports of rare earths or other critical minerals to the U.S., though it remains unclear whether this applies to raw materials or processed products. The country holds an estimated 16.1 million tonnes of rare earth reserves and has previously banned raw exports to develop its domestic processing sector.
Expanding market access
The trade deals also include commitments to remove trade barriers, expand digital and services trade, strengthen labor and environmental standards, and increase U.S. market access across the region.
Thailand, Malaysia, and Vietnam agreed to recognize U.S. vehicle safety and emissions standards, while Malaysia — a global leader in halal certification — pledged to streamline approvals for U.S. cosmetics and pharmaceuticals.
Malaysian Trade Minister Tengku Zafrul Aziz said his country had secured tariff exemptions for aerospace, pharmaceutical, and agricultural products, including palm oil, cacao, and rubber.
Thailand, for its part, committed to removing tariffs on 99% of goods and easing foreign investment restrictions in telecommunications. Bangkok also confirmed large-scale U.S. purchases, including 80 aircraft worth $18.8 billion, and energy imports such as LNG and crude oil valued at $5.4 billion annually.
The agreements followed Trump’s mediation of a ceasefire between Thailand and Cambodia after recent border clashes, signaling Washington’s broader strategy to strengthen economic and political ties in Southeast Asia as U.S.-China rivalry deepens.
