Trump says U.S., China close to trade deal ahead of Xi talks, TikTok decision

US President Donald Trump said Monday that Washington and Beijing are close to “reaching” a trade agreement before his upcoming meeting with Chinese President Xi Jinping.

Trump, speaking aboard Air Force One en route to Japan from Malaysia, added that he may sign a final agreement on TikTok as early as Thursday.

“I have great respect for President Xi, and we will reach an agreement,” Trump said.

He began his week-long Asian tour on Sunday with a series of trade deals and a peace deal aimed at strengthening his position before meeting with Xi.

During his first stop in Malaysia, Trump signed Separate trade and mineral agreements With his Malaysian and Cambodian counterparts, as well as frameworks for trade agreements with Thailand and Vietnam.

The four countries, part of an 11-member regional bloc called the Association of Southeast Asian Nations (ASEAN), pledged to remove trade barriers, provide preferential market access for US goods, and increase purchases of US agricultural products, energy products and aircraft.

They also agreed to cooperate with Washington on export controls, sanctions and access to critical minerals — commitments that appear to bolster Trump’s standing in a region where Beijing has growing influence.

Wendy Cutler, senior vice president of the Asia Society Policy Institute, said the agreements focused on “cooperation rather than hard commitments,” with many important points “much shorter” than previous U.S. trade agreements.

“The United States can impose tariffs or terminate the agreement if it considers that Malaysia is violating its obligations,” Cutler added.

In Japan, Trump is expected to meet Prime Minister Sanae Takaishi and the Emperor before heading to South Korea, capping the trip with an official visit. Asia-Pacific Economic Cooperation (APEC) Summit.

Chinese Premier Li Qiang, who also arrived in Malaysia to attend the 28th China-ASEAN Summit, stopped in Singapore, where he witnessed the signing of eight agreements covering… Trade and the digital economy.

Under the agreements, Washington will do this Maintain tariff rate of 19% On most exports from Malaysia, Cambodia and Thailand, while some products will not face any tariffs, according to joint data released by the White House.

Tariffs on Vietnam will remain at 20% with some goods eligible for duty-free entry, according to Joint statement. Vietnam, which registered a trade surplus of $123 billion with the United States last year, also pledged to increase its purchases of American products to address the trade imbalance.

Malaysia agreed not to impose it Imposing bans or quotas on exports to the United States of vital minerals and accelerate the development of its rare earth projects that American companies need.

The country it is located on It is estimated at 16.1 million tons Of rare earth deposits, A A nationwide moratorium on the export of unprocessed rare earth materials Since last year to develop its manufacturing industries and prevent resource exploitation.

Thailand will ease tariff barriers on American goods by accepting certain American-made vehicles, medical devices, and pharmaceuticals, and importing ethanol as fuel. It also pledged to ease foreign ownership restrictions on American investors in the telecommunications sector.

Michael Wan, an economist at MUFG Bank, said the agreements left open the possibility of identifying additional exemptions for products at a later date. He noted that sectoral tariffs on medicines and electronics will remain key, as will questions about the legality of Trump’s use of the emergency powers law to impose them.

China’s chief trade negotiator Li Chenggang He said Sunday He said a preliminary consensus had been reached after “very extensive discussions” on a range of issues, including fentanyl export controls and shipping fees.

He said the next step is for the two sides to complete local approval procedures.

in Interview with CBS US Treasury Secretary Scott Besent said on Sunday that Trump’s threat of 100% tariffs was “effectively off the table” after a “very good two-day meeting” with Chinese officials.

Speak separately for ABC News “This Week” Besant said the negotiations produced a “substantial framework” that could ease concerns among American soybean farmers about a boycott from China.

China bought more than half of U.S. soybeans in 2023 and 2024, accounting for nearly $12.8 billion in 2024. But Beijing halted purchases earlier this year after Trump sparked a trade war.

Besant also told ABC News that he expects China to postpone rare earth export controls, which are scheduled to take effect in the coming weeks, by one year. Besant added that Trump and Xi could reach an agreement to allow TikTok to continue operating in the United States.

“We believe that both sides, after testing each other’s limits, are likely to make concessions again,” said Ting Lu, a China economist at Nomura Bank, who predicts that additional 100% tariffs on Chinese goods “will definitely not be implemented” with the two sides likely to extend the current tariff truce.

Lu added that, in return, Beijing may resume purchasing US soybeans and ease the application of export controls on rare earth elements.