President Trump’s trade policy gathered new momentum this week as the US agreed a series of trade frameworks with Asian nations and advanced negotiations toward a potential breakthrough with China.
New agreements were finalised with Vietnam, Malaysia, Thailand, and Cambodia, marking a notable expansion of Washington’s economic ties in the region. Under the deal, Vietnam will maintain its 20% tariff rate for now, though negotiators hinted that certain reductions could follow in future rounds. Thailand agreed to keep its 19% rate but pledged to remove nearly all duties on US exports, while Malaysia and Cambodia signed reciprocal pacts that limit tariffs to a maximum of 19%.
At the same time, progress appears to be taking shape between Washington and Beijing ahead of the scheduled meeting this week between President Trump and Chinese President Xi Jinping. Both sides appear to have tentatively outlined a framework that would see China postpone planned export restrictions on rare earth minerals – critical to US technology and defense industries – in return for a suspension of Trump’s proposed tariff increases on Chinese goods. The discussions are also said to include updates to port fees recently introduced by the USTR and China.
However, the long-term direction of Trump’s trade policy remains uncertain as the Supreme Court prepares to hear a landmark case on November 5th that could determine the legality of his tariffs.
Lower courts have previously ruled that the administration exceeded its authority, arguing that the broad application of emergency powers violated existing trade statutes. If the Supreme Court upholds those decisions, it could dismantle large portions of Trump’s trade policy, potentially forcing the government to roll back tariffs and refund billions in collected duties.
With new trade deals taking shape across Asia, delicate negotiations underway with China, and a critical legal showdown on the horizon, the next few weeks could prove decisive for the future of US trade policy under President Trump.