President Donald Trump signed several deals with Asian nations to secure access to critical minerals amid China’s restrictions on rare earth elements essential to key sectors such as defense and energy.
On the first day of his Asia trip, Trump on Sunday signed trade deals and agreements with Malaysia, Thailand, and Cambodia to enhance access to critical minerals. Trump promised not to raise tariffs, but he will maintain his 19% tariffs on all three countries.
“We’re delighted to forge richer partnerships on energy, technology, artificial intelligence, critical minerals, and other industries,” Trump said during a signing ceremony.
The deal occurred just days before Trump is set to meet with Chinese President Xi Jinping. Trade issues are expected to be a main topic of discussion.
The deals are part of the U.S. effort to address trade imbalances after China placed stricter export restrictions on rare earths, posing a threat to the U.S. energy and technology supply chain. Trump has threatened to impose an additional 100% tariff by Nov. 1 in response to China’s export controls on rare earth minerals.
China controls nearly 90% of the global supply of rare earths, which are essential for key sectors such as energy, technology, and defense.
As part of the deals, Trump signed two reciprocal trade agreements with Malaysia and Cambodia.
Malaysia has vowed not to ban or impose quotas on critical mineral or rare earth exports to the United States. Additionally, Cambodia agreed to open its market to U.S. investment in the critical mineral supply chain, including telecommunications, transportation, and infrastructure services.
The two countries, as well as Thailand, signed a Memorandum of Understanding to increase critical mineral exports to the U.S.
During a bilateral meeting between Trump and Malaysian Prime Minister Anwar Ibrahim, U.S. Trade Representative Jamieson Greer said, “We live in a world where having these critical minerals is important to our manufacturing, our technology, and our economy — and it’s very important that we cooperate as willing partners to ensure smooth and secure supply chains for the quality of life of our people and the security of our economies.”
Trump has vowed to bolster the domestic supply chain for critical minerals and rare earths to reduce the U.S. reliance on China.
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As part of the effort, the U.S. has signed deals with several countries, including Australia, to boost domestic supply. It has also taken unusual stakes in private companies to accelerate mineral production. It was reported on Sunday that U.S. and Chinese trade officials agreed to a trade framework on tariffs and rare earths.
Treasury Secretary Scott Bessent said Sunday, “President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”
