Key Points
- Trump focused on trade deals with China and South Korea during his Asia trip. He aimed to reduce tariffs on Chinese goods in exchange for controls on fentanyl exports.
- Trade talks with South Korea faced difficulties over investment structures.
- Trump received a high honor in South Korea and discussed defense spending and nuclear fuel reprocessing.
- He also planned to discuss AI chips with China and was uncertain about Taiwan.
President Donald Trump wrapped up the final leg of his Asia tour in South Korea, buzzing with hopes of settling a lingering tariff agreement with President Lee Jae Myung and orchestrating a trade truce with China’s Xi Jinping. He landed in South Korea from Tokyo, just hours after North Korea test-fired a nuclear-capable cruise missile. Lee gave Trump a grand welcome in Gyeongju, a historic city hosting this year’s Asia-Pacific Economic Cooperation forum.
Trump’s discussions with Xi are scheduled for Thursday in Busan. While on Air Force One, Trump downplayed the North Korean missile test, focusing on his upcoming meeting with the Chinese leader. He anticipates lowering U.S. tariffs on Chinese goods if Beijing commits to controlling fentanyl precursor chemical exports.
The Wall Street Journal reported that the U.S. might cut its 20% tariffs on Chinese goods by half. China’s foreign ministry expressed optimism, stating the meeting would “inject new momentum into the development of U.S.-China relations.”
Trade talks with South Korea, however, hit a snag. Trump, speaking at an APEC CEO summit, said a deal would be finalized “very soon,” though officials on both sides tempered expectations.
A late July deal aimed to avert the worst tariffs by having Seoul invest $350 billion in the U.S., but talks on the investment structure stalled. Lee presented Trump with a gold crown and the “Grand Order of Mugunghwa,” South Korea’s highest honor. Lee also pledged increased defense spending and requested U.S. permission to reprocess nuclear fuel for submarines. Trump promised to help resolve South Korea’s issues with North Korea, but a meeting with Kim Jong Un wouldn’t happen this trip.
Trump will skip the main APEC summit to have dinner with Lee and hold bilateral meetings before departing on Thursday. U.S. officials reported a framework agreement Sunday between the U.S. and China to pause tariffs and rare earths export controls, sending stocks soaring. China, more cautious, did buy its first U.S. soybeans in months. Trump also plans to discuss Nvidia’s Blackwell AI chips with Xi. He wasn’t sure if Taiwan would come up.
Since taking office, Trump has wavered on Taiwan, which China claims, aiming for a trade deal with Beijing. He says Xi won’t invade Taiwan while he’s president, but hasn’t approved new U.S. arms sales to Taipei. Taiwan’s Foreign Minister Lin Chia-lung wasn’t worried Trump would “abandon” the island.
Trump’s whirlwind tour also included Malaysia, where he announced trade pacts, and Tokyo, where he praised Japan’s Prime Minister Sanae Takaichi and signed trade deals.
