Former President Donald Trump just embarked on his first official diplomatic swing through Southeast Asia. He wanted to be known for his role as a peacemaker and as an architect of transatlantic trade. In his one-on-one meetings with leaders including Malaysia’s Anwar Ibrahim, Cambodia’s Hun Manet, and Thailand’s Anutin Charnvirakul, Trump made it clear that the U.S. trade relationship was headed in a new direction. He recommended that the U.S. and its partners in Southeast Asia were both ready to leave past frictions behind.
Trump characterized the discussions held in Malaysia as “constructive, far-reaching and in-depth,” indicating a marked shift in the tone of trade negotiations. His style shows a deep appreciation that enough is enough on all sides of the aisle with the daily quarrels. This exhaustion has characterized global trade for the past few years. By taking on this softer, more unifying tone, Trump hopes to create the collaborative environment necessary to execute in a way that leads to meaningful results.
The picture was more important than the substance and that’s exactly how the former president played it. He touted a “flurry of deals” throughout the region to drum up excitement leading up to his closely watched meeting with Chinese President Xi Jinping in Seoul. This well-calculated strategic timing further highlights Trump’s desire to present a united front among Southeast Asian nations before any direct English with China takes place.
In reality, on Trump’s first tour, he did land some major agreements. One of the biggest was the bilateral agreement with Thailand that removed tariffs on 99.8% of U.S. products. This agreement is likely to further deepen already positive trade relations between the two countries. During his administration, Trump’s White House negotiated a minerals agreement with several other Southeast Asian countries. The deal gives the United States preferential access to rare earth elements. These minerals are essential inputs for dozens of high-tech industries and have become even more important in recent years due to global supply chain crises.
It would be the first time any exemption of a significant import from a prior 100% Trump suggested tariff on other imports, specifically toys. For now, Trump has canned that threat. He didn’t just commission reports and studies, though. As a result, together they found common ground on important topics such as export controls, fentanyl trafficking, and shipping tariffs. These compacts show a serious commitment from everyone involved to work together on solving each community’s most urgent challenges.
That’s why Trump’s Asia roadshow has largely been seen as a historic move to begin establishing a certain sense of détente in the region. His outreach efforts developed into a ceremonial “reciprocal welcome dance” at Kuala Lumpur International Airport (KLIA). This traditional welcome dance embodied the friendly and open spirit that was present at this momentous U.S.-ASEAN summit.
Markets were optimistic about Trump’s peace through strength strategy. This led to an initial relief rally, appertaining to investor confidence of improved trade conditions. Trump’s deals, analysts argue, add up to an intentional pattern. This strategy would diplomatically isolate China while providing friendly, near- or friend-shored supply chains and helping U.S. exporters remain competitive in a global marketplace.
Moreover, Trump’s actions have alleviated some of the tail risks that have haunted industrial metals and semiconductor supply chains for months. Under his leadership, he has created certainty in these industries. This new push seeks to bolster the economic relationships between America and the countries in Southeast Asia.