U.S. President Donald Trump looks on next to people waving Malaysian national flags before he departs on Air Force One from Kuala Lumpur International Airport in Sepang on Oct. 27, 2025. Andrew Caballero-reynolds | Afp | Getty Images
This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Here are five key things investors need to know to start the trading day:
1. Art of the deal
President Donald Trump's administration zeroed in on his tariff policies over the weekend. After pausing trade talks with Canada last week, Trump headed to Asia for a summit with world leaders and announced trade agreements with Malaysia, Cambodia, Thailand and Vietnam. Here's the latest: In the agreements, the four Asian countries pledged to remove trade barriers, give U.S. goods preferential market access and increase their purchase of American products.
But the U.S. will maintain its 19% tariff rate on most goods from Malaysia, Cambodia and Thailand, as well as its 20% duty on most goods from Vietnam, according to the White House.
Top Chinese and U.S. officials meanwhile met to lay out a trade framework for Trump and Chinese leader Xi Jinping to discuss during their expected meeting in South Korea later this week.
Treasury Secretary Scott Bessent said Trump's 100% tariff on China — set to take effect Nov. 1 — is "effectively off the table" following the discussions.
Bessent also said he expects China to delay its rare earth export controls as part of the agreement. Shares of rare earth stocks are significantly lower this morning.
Speaking on Air Force One on Monday, Trump said he expects he and Xi will "come away with the deal."
The flurry of trade agreements comes after Trump placed an additional 10% tariff on Canada over an ad featuring the voice of former President Ronald Reagan. Ontario Premier Doug Ford said Friday that he would pause the ad, but not until after it aired during the this past weekend's World Series games.
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