Trump signs deal with Malaysia, says outcome 'better than expected'
Photo: Donald Trump, President of the United States (Getty Images)
During his visit to Asia, US President Donald Trump signed a major trade agreement with Malaysian Prime Minister Anwar Ibrahim, which, according to Trump, exceeded both sides’ expectations, according to Bloomberg.
The agreement grants Malaysia significant preferential access to the US market, covering exports of chemicals, machinery and electrical equipment, passenger vehicles, and agricultural products.
In return, Malaysia pledged to remove barriers restricting digital trade, investment, and services, as well as to limit unauthorized exports of US-origin goods.
Trump emphasized that the deal will not only boost trade between the two countries but also advance cooperation in critical minerals and rare earth elements, resources vital to the technology and defense industries. He noted that Malaysia will open new opportunities for US companies in the extraction and processing of these materials.
Benefits for business
US Trade Representative Jamieson Greer said the agreement will benefit not only large corporations but also small and medium-sized businesses, particularly in agriculture, technology, and services.
He added that joint investments in rare earths and critical minerals would be transparent and sustainable, ensuring mutual benefit and regulatory compliance.
Malaysia's position
Malaysian Prime Minister Anwar Ibrahim called the deal a "milestone" that will not only strengthen bilateral relations but also serve as a signal to the wider Southeast Asian region.
He said Malaysia plans to rapidly develop its rare earth extraction and processing sector in partnership with American companies.
Trump's wider Asia agenda
The deal is part of Trump’s strategic tour of three Asian nations. Earlier, the US president participated in the signing of a peace agreement between Thailand and Cambodia aimed at de-escalating a border conflict.
The next stops will be Japan and South Korea, where Trump is expected to meet with Chinese leader Xi Jinping.
Trump described the outcome of the talks as "better than expected," adding that the Malaysia deal could serve as a model for future trade agreements in the region.
He said it would not only strengthen economic ties but also enhance the US presence in the strategically important Indo-Pacific region.
Earlier, the United States indicated it might abandon plans to impose 100% tariffs on China.
According to Trade Representative Greer, negotiations between Washington and Beijing are entering the final stages, with a framework already agreed upon for the upcoming Trump–Xi meeting, which is expected to have a significant global economic impact amid ongoing trade tensions.
