US: Trump administration signs trade deals on rare-earth and critical minerals with Malaysia, Cambodia, Thailand, Vietnam

The US has signed trade and critical minerals agreements with Malaysia, Cambodia, Thailand, and Vietnam to address trade imbalances and secure alternative rare earth supply chains amid China’s export restrictions. 

The Trump Administration has signed several trade and critical minerals agreements with four Southeast Asian nations —Malaysia, Cambodia, Thailand, and Vietnam — to address trade imbalances and secure diversified supply chains amid China’s tighter export restrictions on rare earths.

During a summit in Kuala Lumpur, US President Donald Trump finalised reciprocal trade deals with Malaysia and Cambodia, along with a framework agreement with Thailand to tackle tariff and non-tariff barriers. These agreements maintain a 19% tariff on exports from Malaysia, Cambodia, and Thailand, with plans to reduce tariffs on certain goods.

A similar deal was reached with Vietnam, which faces a 20% tariff on its exports to the US Vietnam, holding a USD 123 billion trade surplus with the US last year, has committed to significantly increasing its imports of American products to narrow the trade gap.

Additionally, the US signed agreements with Malaysia and Thailand to diversify critical minerals supply chains, a move seen as a counter to China’s dominance in the sector.

China, the leading producer and processor of rare earths, has tightened export controls on refining technologies, prompting global manufacturers to seek alternative sources for minerals essential to semiconductors, electric vehicles, and military equipment.

Malaysia, which holds an estimated 16.1 million tonnes of rare earth deposits, has agreed not to impose bans or quotas on critical mineral exports to the US, while focusing on developing its downstream processing capabilities.

Meanwhile, reports suggest that China is negotiating with Malaysia to establish a rare-earth refinery in partnership with the Malaysian sovereign wealth fund.

Earlier, on 22 October 2025, Trump expressed optimism about reaching agreements with Chinese President Xi Jinping during their upcoming meeting in South Korea.