By Trevor Hunnicutt, Jihoon Lee and Ju-min Park GYEONGJU, South Korea, Oct 29 (Reuters)–U.S. PresidentDonald Trumpbegan the final leg of his Asia trip in South Korea on Wednesday, optimistic about striking a trade war truce with Chinese President Xi Jinping and advancing an unresolved tariff deal with South Korea’s Lee Jae Myung. Arriving from Tokyo hours after North Koreatest-fired a nuclear-capable cruise missile, Trump is dueto meetwith Lee on Wednesday in Gyeongju, a sleepy South Korean townhosting this year’s Asia-Pacific Economic Cooperation forum,before Thursday’s talks with Xi. Speaking to reporters aboard Air Force One en route to South Korea,Trump dismissed the North Korea missile test and said he was squarely focused on his meeting with the leader of the world’s second-largest economy. “The relationship with China is very good. So I think we’re going to have a very good outcome for our country and for the world, actually,” Trump said. He expects toreduce U.S. tariffson Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals, he added. The U.S. could halve the 20% levies on Chinese goods it currently charges in retaliation for the export of such chemicals, the Wall Street Journal reported. SOUTH KOREA TRADE TALKS STRUGGLE Addressing a summit ofAPEC CEOsin Gyeongju before his meeting with Lee, Trump said a trade deal with South Korea would be finalized “very soon,” though officials on both sides have been downplaying the prospect of a breakthrough this week. The two allies announced a deal in late July under which South Korea would avoid the worst of thetariffsby agreeing to pump $350 billion of new investments into the United States. But talks over the structure of those investments have been deadlocked. Trump has also pressed allies like South Korea to pay more for defense, and South Korea has sought reforms to U.S. immigration laws to allow for more workers to build factories after a raid on a Hyundai Motor005380.KSbattery plant in Georgia. The leaders will discuss trade, investment and peace on the Korean peninsula at talks on Wednesday, Lee’s office said, a reference to engagement with North Korea. Trump has maderepeated callsfor a meeting with North Korean leader Kim Jong Un, including during this trip, but there has been no public comment from Pyongyang. Kim has previously said he could be open to talking if Washington stops pressing him to give up nuclear weapons. Adding to thegolfing giftshe received from Japan’s leader in Tokyo on Tuesday, Lee will present Trump with a replicagold crownand award him with the “Grand Order of Mugunghwa,” the country’s highest decoration. A “golden dessert” is on the menu for their working lunch, Lee’s office said. Trumpwas also treated tored-carpetwelcome on the tarmac in the southern city of Busan earlier on Wednesday, featuring a cannon salute and a brass band rendition of Village People’s YMCA, often played at the U.S. president’s political rallies. TAIWAN ON THE AGENDA? Skipping the main APECsummit, Trump plans adinner with Lee and bilateral meetings with several countries’ leaders, including China’s Xi, beforehe departson Thursday. Negotiators from the world’s top two economies hashed out a framework on Sunday for a deal to pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said. The news sent stocks soaringto record peaks. Trump said he would speak to Xi about Nvidia’sNVDA.Ostate-of-the-art BlackwellAI chips, with sales to China a key sticking pointin tradetalks.
Since taking office in January, Trump has vacillated on his position towards China-claimed Taiwan as he seeks to strike a trade deal with Beijing. Trump says Xi has told him he will not invade Taiwan while the Republican president is in office, but Trump has yet to approve any new U.S. arms sales to Taipei. Taiwan Foreign Minister Lin Chia-lungsaid on Tuesdayhe was not worried that Trump would “abandon” the island in his meeting this week with Xi. China said on Wednesday it “absolutely will not” rule out using force over Taiwan. Trump told reporters on Wednesday that he did not know whether he would even discuss Taiwan with Xi. FINAL STOP IN ASIA TRIP Trump’s trip to South Korea concludes a whirlwind swing through the region, among the hardest hit by his tariff policies and increased U.S.-China competition. In Malaysia, he announced a slew of trade agreements and oversaw the signing of anexpanded trucebetween Thailand and Cambodia after a border conflict. In Tokyo on Tuesday, Trumplavished praiseon Japan’s first female Prime Minister Sanae Takaichi, welcoming her pledge to accelerate a military buildup and signing deals on trade and rare earths. The U.S. and Japan also released a list of projects in which Japanese companies are eyeing U.S. investments, related to Tokyo’s pledge earlier this year of $550 billion in strategic U.S. investments, loans and guarantees in exchange for a tariff reprieve. Washington has pressed South Korea to make a similar arrangement, but Seoul says it cannot afford to pay the $350 billion it pledged upfront. Instead, South Korea has offered a mix of phased investments, loans and other measures. On Tuesday, South Korean Foreign Minister Cho Hyun said a last-minute concession by the United States could lead to a deal. FACTBOX-Key issues at stake in Trump-Lee summit in South KoreaRead full story (Reporting by Trevor Hunnicutt in Tokyo, Jihoon Lee and Ju-min Park in Gyeongju, South Korea; Writing by Josh Smith and John Geddie; Editing by Jamie Freed and Lincoln Feast.) (c) Copyright Thomson Reuters 2025. Subscribe for Daily Maritime Insights Sign up for newsletter and never miss an update — trusted by our 107,153 members
