US President Donald Trump arrives in South Korea, optimistic about trade truce with China’s Xi Jinping after North Korea missile test.
GYEONGJU: US President Donald Trump landed in South Korea for the final leg of his Asia trip, expressing optimism about striking a trade war truce with Chinese President Xi Jinping.
Arriving from Tokyo hours after North Korea test-fired a nuclear-capable cruise missile, Trump is scheduled to address a CEO summit and meet South Korean President Lee Jae Myung in the historic town of Gyeongju.
The main agenda item involves resolving the unfinished trade agreement between the United States and South Korea ahead of Trump’s anticipated meeting with Xi.
Speaking to reporters aboard Air Force One, Trump dismissed the North Korean missile test and focused on his upcoming discussion with the leader of the world’s second-largest economy.
Trump stated that the relationship with China is very good and predicted a great outcome for both the United States and the world.
He expects to reduce US tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals.
After landing in Busan, Trump walked a red carpet while a band played his favourite Village People song YMCA before he boarded a helicopter to Gyeongju.
Trump made no mention of trade talks with South Korea on Wednesday, with both sides downplaying the likelihood of a breakthrough during leader discussions.
The two allies announced a deal in late July where South Korea would avoid severe tariffs by pledging 350 billion US dollars in new US investments.
Talks concerning the structure of these investments have reached a deadlock despite the initial agreement.
Trump has also pressured allies including South Korea to increase their defence spending contributions.
South Korea has sought US immigration law reforms to allow more workers for factory construction following a raid on a Hyundai Motor battery plant in Georgia.
Lee’s office confirmed the leaders will discuss trade, investment, and peace on the Korean peninsula during their Wednesday meeting.
Trump has repeatedly called for a meeting with North Korean leader Kim Jong Un during this trip without any public response from Pyongyang.
Kim has previously stated he might be open to talks if Washington stops pressuring him to abandon nuclear weapons.
Christopher Padilla, a senior adviser at Brunswick Group, noted Trump dislikes large international gatherings and prefers one-on-one leader meetings.
Padilla observed that while the United States steps back, most of the world continues working through such institutions for international cooperation.
Trump will address the APEC CEO summit, dine with Lee, and hold bilateral meetings with several leaders including Xi.
Negotiators from the world’s top two economies established a framework on Sunday for a deal pausing steeper US tariffs and Chinese rare earths export controls.
This news propelled stock markets to record peaks amid positive investor sentiment.
Taiwan Foreign Minister Lin Chia-lung said he was not worried Trump would abandon the island during his meeting with Xi.
Since taking office, Trump has vacillated on his position towards China-claimed Taiwan while pursuing a trade deal with Beijing.
Trump says Xi told him he will not invade Taiwan during his presidency, though Trump has not approved new US arms sales to Taipei.
Trump told reporters he did not know whether he would discuss Taiwan with Xi during their meeting.
Trump arrives in Gyeongju after a whirlwind regional tour through areas heavily impacted by his tariff policies and US-China competition.
In Malaysia, he announced numerous trade agreements and oversaw the signing of an expanded truce between Thailand and Cambodia.
In Tokyo, Trump praised Japan’s first female Prime Minister Sanae Takaichi and welcomed her military buildup pledge while signing trade and rare earths deals.
The United States and Japan released a list of projects where Japanese companies are considering US investments.
This relates to Tokyo’s earlier pledge of 550 billion US dollars in strategic US investments, loans, and guarantees for tariff relief.
Washington has pressed South Korea to make a similar arrangement, but Seoul says it cannot afford its 350 billion dollar pledge upfront.
South Korea has instead proposed a combination of phased investments, loans, and other measures.
On Tuesday, South Korean Foreign Minister Cho Hyun suggested a last-minute US concession could finalise a deal.
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