Trump's week in Asia: BBC correspondents on the wins and potential losses

October 26, 2025

President Donald Trump has arrived in Asia for a diplomatic tour encompassing Malaysia, Japan, and South Korea, with a highly anticipated meeting with Chinese President Xi Jinping scheduled during the trip. Trade tensions between the world's two largest economies dominate the agenda, particularly as Trump seeks to balance tariff revenue with sustainable economic relationships. The high-stakes meeting with Xi, their first since 2019, could define US-China relations for Trump's second term, with both leaders entering negotiations from challenging positions.

Who is affected

US and Chinese businesses and economies
American farmers whose agricultural exports to China have been reduced
Southeast Asian countries (Malaysia, Vietnam, Indonesia, Singapore, Thailand) caught between US and China
Japanese and South Korean automakers and manufacturers facing tariffs
US chipmakers with operations in Malaysia
Japanese farmers concerned about increased US farm product purchases
South Korea's economy, potentially impacted by Trump's investment demands

What action is being taken

Trump is conducting a diplomatic tour through Malaysia, Japan, and South Korea
Trump and Xi Jinping are meeting for the first time since 2019 in South Korea
China is leveraging its control of rare earth minerals as a negotiating tactic
Thailand and Cambodia are signing a peace accord at a ceremony arranged for Trump
Japan is working to finalize a tariff deal that would reduce US import duties on Japanese cars
South Korean officials are negotiating with the US to lower duties on their exports

Why it matters

The outcome could determine if there will be a full-blown trade war between the US and China
US stock indexes have shown steep tumbles whenever US-China relations appear at an impasse
Exports from Southeast Asia to the US have doubled since Trump's last visit to the Asean summit in 2017
Japan hosts approximately 53,000 US military personnel and is negotiating its defense contribution
South Korea faces Trump's demand for $350 billion in US investments, equivalent to one-fifth of its economy
The meeting could set the course for US-China relations for the rest of Trump's second term

What's next

No explicit next steps stated in the article

Read full article from source: BBC