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What Trump wants from Asia and what Asia wants from him

The president’s first trip to the region in his second term aims to reset strained economic ties and show Washington’s influence as China’s power expands.

October 26, 2025 / 13:06 IST
Trump’s visit underscores a familiar paradox: his mix of transactional deal-making and nationalist rhetoric continues to unsettle allies even as it draws them closer economically.

US President Donald Trump began a five-day tour of Asia this weekend — his first visit to the region since returning to office — with stops in Malaysia, Japan, and South Korea, followed by a long-anticipated meeting with China’s Xi Jinping. The White House is billing the trip as an opportunity to secure new trade deals and position Trump as a peace broker in Southeast Asia, but leaders across the region are wary of his unpredictable diplomacy and tariff-driven agenda, the New York Times reported.

Malaysia: trade and peace overtures

Trump’s first stop is Kuala Lumpur, where he is expected to finalize a bilateral trade agreement and attend a ceremony marking a peace deal between Thailand and Cambodia. The visit comes as Southeast Asian nations seek clarity on Washington’s trade policies after being hit by sweeping tariffs of up to 20 percent during Trump’s first term. Many governments remain sceptical despite recognising US markets as vital for exports and investment.

For Washington, Southeast Asia’s importance extends beyond commerce. The region has become a critical supply-chain hub for US companies shifting production away from China and a geopolitical counterweight to Beijing’s growing influence.

Japan: a test for a new prime minister

Trump’s next destination is Tokyo, where he will meet Japan’s newly elected prime minister, Sanae Takaichi — the first woman to hold the office. The two leaders will focus on finalising a trade deal that lowered Japan’s tariffs in exchange for a $550 billion investment commitment in the United States. Still, questions remain about how Japan will allocate that money and how far it will go to satisfy Trump’s demand for increased defence spending.

Takaichi has promised to maintain Japan’s alliance with the US while boosting defence spending to 2 percent of GDP, two years ahead of schedule. She is also expected to seek assurances that Washington will continue to counterbalance China’s regional dominance.

South Korea: tariffs and diplomacy collide

Trump will then attend the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, hosted by South Korea’s President Lee Jae Myung. Seoul hopes to resolve a lingering dispute over auto tariffs after pledging $350 billion in US investments earlier this year. While South Korea remains a close US ally, its trade dependence on China complicates its balancing act between the two superpowers.

Lee’s challenge will be maintaining economic stability while keeping South Korea’s alliance with both the US and Japan intact.

China: the trip’s defining encounter

The tour culminates in Trump’s meeting with Xi Jinping — their first since Trump’s return to office — amid renewed economic tensions. Beijing is pressing Washington to roll back tariffs and ease tech export restrictions, while Trump wants China to increase purchases of US soybeans and Boeing aircraft. Xi holds considerable leverage, controlling the rare earth minerals crucial to global manufacturing.

Trump, meanwhile, is threatening new 100 percent tariffs and further investigations into China’s trade practices. Whether their talks lead to de-escalation or deepen rivalry could shape global markets for months.

The message to Asia

Trump’s visit underscores a familiar paradox: his mix of transactional deal-making and nationalist rhetoric continues to unsettle allies even as it draws them closer economically. For many Asian leaders, the question is not whether the US remains a key player — but whether it is a predictable one.

Moneycontrol World Desk
first published: Oct 26, 2025 12:17 pm

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