The US and China say a trade deal is moving closer as Trump and Xi prepare to meet

KUALA LUMPUR, Malaysia — A trade deal between the United States and China is moving closer, officials from the world’s two largest economies said Sunday as they reached an initial consensus for President Donald Trump and Chinese leader Xi Jinping to finalize during their high-stakes meeting.

Any agreement would be a relief to international markets, even if the underlying issues surrounding production imbalances and access to state-of-the-art computer chips are not addressed.

Beijing recently restricted exports of rare earth metals needed for advanced technologies, and Trump responded by threatening additional tariffs on Chinese products. The prospect of a spreading conflict threatened to weaken economic growth worldwide.

China’s top trade negotiator Li Chenggang told reporters the two sides had reached a “preliminary consensus,” while Trump’s Treasury Secretary Scott Bessent said there was “a very successful framework.”

Trump also expressed confidence that a deal was close, saying the Chinese “want to make a deal and we want to make a deal.” The Republican president will meet with Xi in South Korea on Thursday, the final stop of his Asia trip. Trump reiterated that he plans to visit China in the future and suggested Xi could come to Washington or Mar-a-Lago, Trump’s private club in Florida.

Bessent told CBS’ “Face the Nation” that the threat of additional higher tariffs on China was “effectively off the table.” In interviews on several U.S. news shows, he said talks with China had yielded initial agreements to prevent the precursor chemicals for fentanyl from coming to the U.S., and that Beijing would make “substantial” purchases of soybeans and other agricultural products while delaying export controls on rare earths.

The progress toward a possible deal came at the Association of Southeast Asian Nations’ annual summit in Kuala Lumpur, where Trump sought to burnish his reputation as an international dealmaker.

Yet his approach to pursuing deals has led to serious disruptions at home and abroad. His import taxes have disrupted relations with trading partners, while a US government shutdown has put him at odds with Democrats.

U.S. Treasury Secretary Scott Bessent reacts during a meeting between President Donald Trump and Brazilian President Luiz Inacio Lula da Silva on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia, Sunday, October 26, 2025.

Mark Schiefelbein/AP

hide caption

change caption

Mark Schiefelbein/AP

Trump attends the ceasefire between Thailand and Cambodia

During the summit, Thailand and Cambodia signed a comprehensive ceasefire agreement in a ceremony attended by Trump. His threats of economic pressure urged the two countries earlier this year to end skirmishes along their disputed border.

Thailand will release Cambodian prisoners and Cambodia will begin withdrawing heavy artillery as part of the first phase of the deal. Regional observers will monitor the situation to ensure fighting does not restart.

“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” and Thai Prime Minister Anutin Charnvirakul said the agreement “creates the building blocks for lasting peace.”

The president signed economic frameworks with Cambodia, Thailand and Malaysia, some aimed at increasing trade in crucial minerals. The United States wants to be less dependent on China, which has used limited exports of key components in technological production as a bargaining chip in trade negotiations.

“It is very important that we work together as willing partners to ensure that we can have smooth supply chains and secure supply chains, for the quality of life, for our people and for safety,” said U.S. Trade Representative Jamieson Greer.

President Donald Trump, center left, poses with other leaders during the ASEAN US Summit in Kuala Lumpur, Malaysia, Sunday, Oct. 26, 2025.

Vincent Thian/AP Pool

hide caption

change caption

Vincent Thian/AP Pool

Trump is once again entering into discussions with an important region of the world

Trump attended this summit only once during his first term, and US Defense Secretary Pete Hegseth appeared unfamiliar with ASEAN during his confirmation hearing in January.

This year’s event was a chance for Trump to reconnect with countries that have a combined $3.8 trillion economy and 680 million people.

“The United States stands with you 100%, and we intend to be a strong partner and friend for generations to come,” Trump said. He described his counterparts as “spectacular leaders” and said that “everything you touch turns to gold.”

Trump’s tariff threats are said to have boosted negotiations between Thailand and Cambodia. Some of the worst modern fighting between the two countries took place over five days in July, leaving dozens dead and hundreds of thousands of people displaced.

The president at the time threatened to suspend trade deals unless the fighting stopped. Since then there has been a shaky truce.

Malaysian Prime Minister Anwar Ibrahim praised the Thailand-Cambodia agreement, saying at the summit that “it reminds us that reconciliation is not a concession, but an act of courage.”

The tariffs are central to Trump’s trip

Trump met Brazilian President Luiz Inácio Lula da Silva in Kuala Lumpur, who also attended the summit. There has been friction between them over Brazil’s prosecution of Jair Bolsonaro, the country’s former president and a close Trump ally. Bolsonaro was convicted last month of attempting to overturn the election results in his country.

During their meeting, Trump said he could reduce tariffs on Brazil, which he had imposed in a bid for leniency for Bolsonaro.

“I think we should be able to make good deals for both countries,” he said.

While Trump warmed to Lula, he avoided Canadian Prime Minister Mark Carney. The president is angry with Canada over a television commercial protesting its trade policies, and on the way to the summit he announced on social media that he would therefore raise tariffs on Canada.

One leader absent from the summit was Indian Prime Minister Narendra Modi. Although he had a close relationship with Trump during Trump’s first term, the relationship has become more tense lately. Trump sparked irritation by boasting that he had resolved a recent conflict between India and Pakistan and increased tariffs on India for purchasing Russian oil.