Trump Malaysia Sign Trade Minerals Deals Counter China

US President Donald Trump and Malaysian Prime Minister Anwar Ibrahim signed a trade agreement and a critical minerals pact in Kuala Lumpur aimed at boosting trade and securing US access to critical minerals amidst China's tightening of rare earth exports. The agreement includes Malaysia's commitment not to impose restrictions or quotas on exports of critical minerals to the US, and to expedite the development of its critical minerals sector with US companies. The US agreed to maintain a 19% tariff rate on Malaysian goods, including preferential market access for US industrial and agricultural exports, while Malaysia committed to significant procurement of US aircraft and technology products. Malaysia is also working to keep US-bound semiconductor exports tariff-free amid concerns over potential US tariffs on chips, highlighting the importance of the US market for Malaysia's electronics sector. This agreement is part of broader US efforts in Southeast Asia to counter China's influence and secure supply chains for critical materials used in technology and clean energy. The deal follows Trump's engagement with ASEAN countries and precedes a scheduled meeting with Chinese leader Xi Jinping, reflecting heightened geopolitical and trade tensions in the region.