Trump and Xi Set for Crucial Trade Talks as US President Concludes Productive Asia Tour

US President Donald Trump expressed optimism ahead of critical trade discussions with Chinese President Xi Jinping, stating that "a lot of problems are going to be solved" during their upcoming "great meeting."

While in South Korea, Trump also announced that a deal with Seoul was "pretty much" finalized, marking significant progress in bilateral relations.

The meeting with Xi, scheduled to take place in South Korea's Busan, could potentially establish a truce in the ongoing US-China trade war, providing a fitting conclusion to Trump's Asia tour, which has been characterized by ceremonial honors and generous gifts.

Trump indicated that a prospective meeting with North Korean leader Kim Jong Un during this trip would not materialize due to timing constraints, though he anticipated such an encounter in the "not too distant future."

Global markets are closely monitoring the outcome of the Trump-Xi talks, as negotiators from both nations have confirmed a "framework" agreement ahead of this first face-to-face meeting during Trump's second presidential term.

Chinese foreign ministry spokesman Guo Jiakun expressed willingness to collaborate with the US to ensure the meeting "yields positive outcomes" and "injects new momentum into the stable development of China-US relations."

Trump suggested the agreement would include reducing the 20 percent tariffs on Chinese goods related to fentanyl, addressing a substance responsible for tens of thousands of American deaths.

Other critical issues on the agenda include Chinese purchases of US soybeans, export controls on rare earths, semiconductors for artificial intelligence, and TikTok's future operations.

Throughout his three-country Asian tour, Trump has received exceptional treatment from Malaysia, Japan, and South Korea, including prestigious honors and valuable gifts.

Japan's new premier Sanae Takaichi announced her intention to nominate Trump for the Nobel Peace Prize and presented him with a putter previously owned by the late Prime Minister Shinzo Abe, along with a gold-plated golf ball.

In South Korea, President Lee Jae Myung—wearing a golden tie—bestowed upon Trump the country's highest order and gifted him a replica of an ancient golden crown, which Trump expressed interest in wearing immediately.

The South Korean presidential office prepared a state dinner featuring golden citrus dessert and gold-adorned brownies for the APEC summit in Gyeongju.

Regarding US-South Korea trade relations, Trump stated that Washington had agreed to reduce tariffs on South Korean imports to 15 percent in exchange for a $350 billion investment pledge.

South Korean presidential aide Kim Yong-beom confirmed that negotiators had "reached an agreement on the details of the tariff negotiations," specifying that the investment package comprises "$200 billion in cash investment and $150 billion in shipbuilding cooperation."

Hours before Trump's arrival, North Korea announced test launches of sea-to-surface cruise missiles, demonstrating strength against what Pyongyang terms its "enemies."

Trump indicated his intention to "straighten out" tensions between North and South Korea, which technically remain in a state of war.

The last meeting between Trump and Kim occurred in 2019 at the Demilitarized Zone (DMZ), the Cold War frontier separating the two Koreas.

Since then, Kim has strengthened his position through crucial Russian support, having dispatched thousands of North Korean troops to fight alongside Moscow's forces.

Gi-Wook Shin, a Korea expert and sociology professor at Stanford University, suggested that Kim would likely attempt to "maximise his leverage with Trump," noting that "a future meeting remains possible, as Kim likely sees Trump as his best chance to secure the kind of deal he wants, including recognition as a nuclear state."