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October 26, 2025

U.S., China agree trade framework in Malaysia

PolitiFact
Reuters
Reuters

U.S. and China reach preliminary trade framework as Trump meets Xi amid 60% tariffs and trade tensions

Trump traveled to Kuala Lumpur, Malaysia, for the ASEAN summit on Oct. 25-27, 2025. He and Chinese President Xi JinpingXi Jinping held a bilateral meeting on the sidelines to discuss tariffs and trade. Both leaders framed the talks as aimed at negotiating tariff reductions but they announced no formal deal at the summit.

On Mar. 4, 2025, the U.S. announced new tariffs tied to fentanyl concerns, prompting China to vow countermeasures, according to reporting. Beijing said it would respond with retaliatory steps aimed at protecting Chinese exporters. The announcement and Beijing's threat raised tensions ahead of the Malaysia talks.

Reporting in Mar. 2025 said China threatened retaliatory tariffs and other trade measures against U.S. goods as a response to Washington's actions. Those threats risked harming U.S. exporters already affected by trade frictions. Trade officials warned the exchange of measures made negotiations more politically sensitive.

The Malaysia meetings occurred after U.S. discussions with Canada broke down in late Oct. 2025, according to news reports. That rupture complicated Washington's negotiating position with other partners. Observers said the timing made the ASEAN summit a key chance for the U.S. to try to restore trade credibility.

📈Trade🌍Foreign Policy💰Economy

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People, bills, and sources

Donald J. Trump

Donald J. Trump

President of the United States

Xi Jinping

Xi Jinping

President of China

Anwar Ibrahim

Prime Minister of Malaysia

Association of Southeast Asian Nations (ASEAN)

Regional organization