The United States and Thailand just set a new baseline for trade. During a packed day of high-stakes diplomacy in Kuala Lumpur, both countries signed a framework to remove nearly all trade barriers between them.
Thailand agreed to slash tariffs on about 99% of U.S. goods, everything from farm exports to industrial products. The U.S. is committed to clearing non-tariff barriers and setting up a new system to handle future disputes.
The announcement came during the regional summit where President Donald J. Trump participated in the 13th annual U.S.-ASEAN meeting. He didn’t stop at Thailand. He also signed reciprocal trade agreements with Cambodia and Malaysia, issued joint statements with Vietnam, and hammered out multiple defense deals.
Trump met with four heads of government in a single day, called it “a historic alignment of peace and commerce,” and said, “We’re clearing the table, making it fair, finally.”
Thailand signs peace with Cambodia, frees detained soldiers
Thailand didn’t just ink trade deals. It signed peace. Prime Minister Anutin Charnvirakul joined Cambodia’s leader at a ceremony hosted by Trump and Malaysia’s Prime Minister Anwar Ibrahim.
There, they signed the ‘Kuala Lumpur Peace Accords,’ an agreement that ended months of rising border tension. Thailand agreed to free 18 Cambodian soldiers who had been detained since July.
Both sides committed to building border observer teams. These will monitor activity and de-escalate flashpoints in real time. “This is about peace with real consequences,” Trump said. “People’s lives are on the line. And now they’ll be safe.”
This peace breakthrough wasn’t isolated. In the same room, Malaysia finalized a major deal with the U.S. that will cut tariffs and lift restrictions on American agriculture, cars, and machinery.
Malaysia will also end unfair policies that blocked U.S. vehicles from competing in its market. In return, the U.S. will recognize Malaysian regulatory oversight, no more double testing or duplicate forms.
Cambodia made a similar offer, agreeing to eliminate all tariffs on U.S. exports, including food and industrial goods.
With Cambodia, Washington also agreed to restart the ANGKOR SENTINEL defense exercise, last held in 2017. And for the first time since Prime Minister Hun Manet took power, he met face-to-face with a U.S. president.
The U.S. also agreed to lift its arms embargo and open more training seats at West Point and the Air Force Academy for Cambodian officers.
US, Thailand ramp up defense and crime-fighting partnership
Thailand and the United States also expanded defense cooperation. Both countries signed a Memorandum of Understanding focused on strengthening supply chains for critical minerals used in chips, EVs, and more.
The MOU also promotes deals between U.S. and Thai firms. The goal? Push back against subsidized dumping, fake pricing, and low standards that’ve polluted global markets. Thailand also pledged to step up cybercrime cooperation.
U.S. and Thai law enforcement agencies will now work together to crack down on scam centers and financial fraud rings, some of which have stolen over $10 billion from Americans. “These aren’t kids in basements. These are organized networks. We’re going after them,” a U.S. official said.
Elsewhere, Trump closed a $3.4 billion annual LNG deal with Malaysia’s Petronas, $42.6 million in coal sales, and $119 million in telecom exports.
Malaysia committed to buying 30 Boeing planes with an option for 30 more, and agreed to purchase $150 billion worth of U.S. semiconductors, aerospace parts, and data center gear.
Both countries signed another MOU on maritime security and even co-signed the Artemis Accords—bringing the number of space-exploring nations onboard to 59.
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