Trump talks up trade deal prospects as Asia tour hits South Korea

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Gyeongju: US President Donald Trump kicked off the final leg of his Asia trip in South Korea on Wednesday, hoping to strike a chord in the trade war with Chinese President Xi Jinping and advance an unresolved tariff deal with South Korea’s Lee Jae-myung.

After arriving from Tokyo following North Korea’s test of a nuclear-capable cruise missile, Trump will meet Lee on Wednesday in Jeongju, a sleepy South Korean hub that hosts this year’s Asia-Pacific Economic Cooperation Forum.

Speaking to reporters aboard Air Force One en route to South Korea, Trump dismissed North Korea’s missile test, saying he was focused on meeting the leader of the world’s second-largest economy.

“The relationship with China is great. So I think we’re going to have great results for our country and the world, actually,” Trump said.

They expect US tariffs on Chinese goods to be reduced in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals. According to the Wall Street Journal, the US could halve 20% levies on Chinese goods in retaliation for exporting such chemicals.

South Korea’s trade talks struggle

Trump made no mention of trade talks with South Korea on Wednesday, with both sides downplaying the prospect of progress in the leader’s talks.

The two allies announced a deal in late July under which South Korea would avoid the worst tariffs by agreeing to $350 billion in new investments in the United States. But the discussion on these investment structures has ended.

Trump has also pressed allies such as South Korea to pay more for defense, and South Korea has reformed US immigration laws to allow more factory workers after a raid on a Hyundai Motor 005380.ks battery plant in Georgia.

Regarding engagement with North Korea, Lee’s office said the leaders will discuss trade, investment and peace on the Korean Peninsula at talks on Wednesday.

During the trip, Trump has repeatedly called for talks with North Korean leader Kim Jong-un, but there has been no public comment from Pyongyang. Kim has previously said he may be open to talks if Washington stops pushing for a nuclear arms waiver.

Adding to the golfing gifts he received from Japan’s leader in Tokyo on Tuesday, Lee will present Trump with a replica gold crown and award him with the “Grand Order of Mugungwa,” the country’s highest decoration.

Lee’s office said a “golden dessert” is on the menu for his working lunch.

Taiwan on the agenda?

Skipping the main APEC summit, Trump will address the APEC CEO Summit, have dinner with Li and hold bilateral meetings with leaders of several countries, including China’s XI, before departing on Thursday.

Negotiators from the world’s top two economies on Sunday laid out a framework for a deal to end U.S. tariffs and export controls on Chinese rare earths, U.S. officials said. The news pushed stocks to record highs.

Taiwan’s Foreign Minister Lin Chia-lung said on Tuesday that he was not worried that Trump would “abandon” the island at his meeting with the 11 this week.

Since taking office in January, Trump has vacated his position toward China’s claimant Taiwan as he tries to strike a trade deal with Beijing. Trump says XI has told him he won’t attack Taiwan while a Republican president is in office, but Trump has yet to approve any new U.S. arms sales to Taipei.

China said on Wednesday it would not rule out using force against Taiwan.

Trump told reporters on Wednesday that he did not know whether he would also discuss Taiwan with XI.