US President Donald Trump’s trip to Asia which begins Sunday carries significant economic stakes for countries around the region, with multiple tariff deals still pending and a trade dispute simmering between Washington and Beijing.
Trump will visit Malaysia from October 26 to 27 for the Association of Southeast Asian Nations (ASEAN) summit. He will then travel to Japan before attending the Asia-Pacific Economic Cooperation (APEC) summit in South Korea starting October 29.
Here follows some of the key issues:
Malaysia is expected to finalise a trade deal with Washington during Trump’s visit to Kuala Lumpur, with negotiations “99.9 percent” complete, according to Malaysian Prime Minister Anwar Ibrahim.
The governments will also sign “initial agreements” to strengthen trade and investment, he said. “Semiconductors, AI, digital and energy are all covered,” he added.
Malaysia has been hit by US tariffs of 19 percent on its exports, and Trump is considering imposing additional tariffs on imported chips. Malaysia is the world’s sixth-largest exporter of semiconductors, which make up 40 percent of its exports.
Chinese Vice Premier He Lifeng will travel to Malaysia for trade negotiations with US Treasury Secretary Scott Bessent before an anticipated meeting between Trump and Xi Jinping in South Korea.
Trump said on Wednesday he hopes to reach a “deal on everything” with Xi, after US-China trade tensions recently escalated.
Beijing announced it would strengthen its controls on the export of rare earth elements, essential manufacturing materials over which it holds a near-monopoly. In response, Trump threatened huge additional tariffs.
Japan’s new Prime Minister Sanae Takaichi will host Trump in Tokyo.
In exchange for an agreement concluded in July that lowered US-imposed tariffs on Japan, Washington is demanding $550 billion worth of Japanese investments in the United States.
However, Tokyo has promised only one to two percent of that would come in the form of direct investments, with the rest made of loans and guarantees — a point of difference that could come up in the talks between the leaders.
Another key topic would likely be Washington’s demands that Tokyo stops importing liquefied natural gas from Russia, the island nation’s third-largest supplier.
Japan is also facing high tariff rates on key exports. Although Trump has reduced tariffs on Japanese automobiles to 15 percent, this rate is still considered too high by manufacturers, while 50 percent tariffs remain on Japanese steel.
As Seoul struggles to reach a trade agreement with Washington, US Treasury Secretary Bessent said last week that an agreement was nearing completion.
The South Korean Chief Presidential Secretary for Policy, Kim Yong-beom, has said that both parties have made significant progress, though the details of the deal still need to be settled.
In July, Trump announced he had agreed to reduce tariffs on South Korean products to 15 perecent in exchange for a commitment from Seoul for Korean investment of $350 billion in the United States.
However, the terms of these investments are still being hotly debated and tariffs on automobiles remain. The arrest of hundreds of South Korean workers by US immigration authorities has also strained relations.
Jakarta and Washington struck a preliminary tariff agreement in July that reduced US tariffs on Indonesian goods to 19 percent in exchange for significant investment and Indonesia pledging to acquire 50 Boeing aircraft, according to Trump.
Indonesia’s Chief Economic Minister, Airlangga Hartarto, who previously signalled a December deadline for the details of the reciprocal tariff agreement, said on Monday the negotiation had been “temporarily halted” due to the US government shutdown.
Vietnam reached an agreement with Washington in July to reduce tariffs on the country’s exports to 20 percent, but Vietnam still faces a large impact from sector-specific duties.
In mid-October, Washington imposed a 25 percent tariffs on imports of furniture, which accounts for 10 percent of Vietnam’s exports to the US.
Hanoi has said it wishes to advance “the negotiation process for the trade deal on the basis of fairness, equality and mutual benefit.”
Indian Prime Minister Narendra Modi is scheduled to participate in the ASEAN summit via video conference, and New Delhi is yet to reach a formal trade agreement with the Trump administration.
The relationship between the two countries deteriorated in August when Washington raised tariffs on Indian exports to 50 percent, but the two leaders have since adopted a more conciliatory tone.
