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Ahead of Xi talks, Trump pairs trade deals with peace diplomacy to project US influence in Asia

FP News Desk October 26, 2025, 21:57:12 IST

President Trump started his Asia tour with a series of trade agreements across Southeast Asia, signalling a renewed push to assert US economic influence before his much-anticipated meeting with Chinese President Xi Jinping later this week.

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U.S. President Donald Trump speaks to members of the press as he departs the White House for Joint Base Andrews on October 24, 2025 in Washington, DC.- AFP
U.S. President Donald Trump speaks to members of the press as he departs the White House for Joint Base Andrews on October 24, 2025 in Washington, DC.- AFP

US President Donald Trump began his Asia tour by announcing multiple trade agreements and diplomatic initiatives, setting the stage for a high-stakes summit with Chinese President Xi Jinping later this week.

Within hours of arriving in Malaysia for the Association of Southeast Asian Nations (ASEAN) summit, Trump announced six trade agreements with four countries Malaysia, Thailand, Vietnam, and Cambodia.

The deals cover critical minerals, rare earth elements and broader market access. Malaysia pledged to refrain from imposing export quotas on critical minerals, while Vietnam and Cambodia offered US exporters “unprecedented” access to local markets.

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Analysts suggest the agreements are designed not only to boost US exports but also to counter Beijing’s expanding influence over key supply chains in Southeast Asia. “The Trump administration is signalling that it can deliver both economic benefits and diplomatic stability in the region, ahead of key negotiations with Beijing,” said a senior trade analyst cited by Seeking Alpha.

Trump brimmed with confidence ahead of the meeting with Xi in South Korea, that seeks to end the bruising trade war between the world’s two biggest economies.

“I think we’re going to make a deal,” he told reporters in Kuala Lumpur, as US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng concluded two days of meetings.

China’s vice commerce minister Li Chenggang told reporters a “preliminary consensus” had been reached.

Peace diplomacy bolsters US influence

Trump also presided over the signing of an expanded ceasefire agreement between Thailand and Cambodia, following his intervention in July to halt deadly border clashes. “My administration immediately began working to prevent the conflict from escalating. Everybody was sort of amazed that we got it done so quickly,” Trump said.

Experts say this dual approach combining trade and security achievements  positions the US as a credible partner for ASEAN nations, projecting influence in both economic and geopolitical spheres.

US–China trade talks: A tentative framework

On the sidelines, U.S. and Chinese negotiators held intensive discussions to de-escalate the ongoing trade war. Treasury Secretary Scott Bessent told ABC’s This Week that China agreed to defer new export curbs on rare earths for a year and to resume substantial U.S. soybean purchases.

Trump expressed confidence that a formal deal would be finalised during his Thursday meeting with Xi in South Korea. Beijing’s top trade negotiator, Li Chenggang, described the preliminary consensus as the result of “very intense consultations,” aimed at averting 100% US tariffs that were threatened for November.

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Strategic signalling and global leverage

Trump also met Brazilian President Luiz Inacio Lula da Silva to begin talks on lowering US tariffs by 50% on Brazilian goods, while Canadian negotiations remain stalled, with an additional 10% tariff imposed on Canadian exports. Analysts argue this selective approach reinforces Washington’s leverage across multiple regions.

While the rapid pace and breadth of agreements raise questions about implementation, experts note that the announcements are as much about optics and geopolitical signalling as they are about tangible trade gains. By coupling economic deals with high-profile diplomatic interventions, the US enters the Xi summit projecting regional leadership and negotiating strength.

ASEAN integration and regional implications

The tour also coincided with East Timor’s formal induction as ASEAN’s 11th member. Prime Minister Xanana Gusmao described the milestone as “a powerful affirmation of our journey” (Bloomberg). The integration of Asia’s youngest nation illustrates how U.S. engagement with regional multilateral frameworks can amplify Washington’s strategic influence.

In sum, Trump’s Asia tour blends trade, diplomacy, and geopolitical signalling. Success will depend on converting preliminary frameworks into enforceable commitments, maintaining credibility with ASEAN partners, and navigating Beijing’s counterstrategies. Analysts say the outcomes will shape both the trajectory of US–China trade relations and Washington’s broader Indo-Pacific strategy.

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