World leaders convened in Malaysia on Monday to strengthen economic and trade partnerships as concerns grow over looming U.S. tariffs, following President Donald Trump’s early departure from the ASEAN summit to continue his Asia tour.
Before leaving, Trump oversaw several regional agreements, including an expanded ceasefire between Cambodia and Thailand and four trade framework deals across Southeast Asia. However, none eased Washington’s steep tariffs on Cambodia, Malaysia, Thailand, or Vietnam though the White House signaled room for future exemptions.
Trump’s exit leaves other global leaders, including officials from China, the European Union, Brazil, Canada, and the ASEAN bloc, to chart their own paths toward regional cooperation and trade resilience.
Why It Matters:
The summit unfolds amid a fragile global economy and intensifying trade tensions between Washington and Beijing. As the U.S. pursues protectionist policies, Asian and European leaders are seeking to diversify trade networks and bolster multilateral frameworks such as the Regional Comprehensive Economic Partnership (RCEP)
the world’s largest trade bloc, covering 30% of global GDP.
China, facing expanded U.S. tariffs, is expected to champion free trade and regional integration as a counterbalance to U.S. economic pressure.
European Council President Antonio Costa met with Chinese Premier Li Qiang, pressing for “fluid and predictable supply chains” amid China’s tighter export controls on critical minerals and rare earths, key components in global manufacturing. Costa also urged Beijing to play a greater role in ending the Russia-Ukraine war.
Brazilian President Luiz Inácio Lula da Silva said his meeting with Trump “guaranteed” progress on a new trade deal, calling for fairer treatment after Washington imposed 50% tariffs on Brazilian exports.
ASEAN leaders, representing 11 member states, reiterated their commitment to open trade and regional stability, despite divisions over the U.S.–China rivalry.
What’s Next:
Talks are expected to intensify around RCEP implementation, supply chain resilience, and energy cooperation as the summit continues.
With Trump en route to Japan for further negotiations and a planned meeting with Chinese President Xi Jinping later this week, global markets will watch for signs of whether diplomacy can ease the tariff-driven trade uncertainty overshadowing the region.
With information from Reuters.
