President Donald Trump landed in South Korea on Wednesday for the final leg of his tour of Asia, declaring he feels optimistic about striking trade deals with China and South Korea. Trump came in from Tokyo mere hours after North Korea tested a nuclear-capable cruise missile, but he assured reporters that he’s not concerned about that at the moment. Trump arrived at Busan airport to a grand reception with firing of cannons and a brass band singing YMCA, played at his political rallies.
He is in Gyeongju for Asia-Pacific Economic Cooperation forum meetings this year. On Thursday, he will have crucial trade talks with Chinese President Xi Jinping. Referring to the state of affairs with China, Trump told reporters on Air Force One that it was very good. “I believe we’re going to have a very good result for our country and for the world,” he stated. He is seeking to reduce taxes on Chinese goods in return for China halting shipments of chemicals used to produce fentanyl, a lethal drug.
China Deal May Reduce Tariffs by Half
Currently, the U.S. levies 20 percent tariffs on Chinese goods. Trump could cut that in half if he gets his terms from China, the Wall Street Journal said. American and Chinese trade negotiators hammered out a general outline for an agreement on Sunday. When news of that hit the markets, they surged to all-time highs. One of the big questions is whether Trump will discuss Taiwan with Xi, the island claimed by China. Trump’s stance on Taiwan continues to shift as he attempts to negotiate a trade agreement with China.
The foreign minister of Taiwan said he is not concerned Trump will leave the island, but China said it will not exclude force on Taiwan. Trump informed reporters that he does not even know if he will mention Taiwan with Xi. Trump has also requested a number of times to sit down with North Korean leader Kim Jong Un, even on this visit. But North Korea has said nothing publicly. Kim stated before that he might engage in conversation if Washington halts insisting that he relinquish nuclear weapons.
South Korea Investment Agreement Still Bogged Down
Trump met with South Korean President Lee Jae Myung on Wednesday regarding a trade agreement that’s been bogged down for months. Addressing business executives, Trump promised that a deal would be accomplished “very soon,” but individuals involved on both sides confirm they don’t expect too much this week. In July, the two nations revealed that South Korea will invest $350 billion in the United States to escape the worst tariffs. But they disagree about how those investments must be structured.
South Korea maintains that it can’t pay all of that money at once and wants to pay it out over time. Washington is looking for something sooner. Trump also has been urging South Korea to contribute more to defense. South Korea is looking for reforms in American immigration laws so more workers can come in to construct factories. The two leaders will also discuss peace on the Korean peninsula and how to handle North Korea. As presents, Lee will present Trump with a replica gold crown and South Korea’s highest award. They’re eating lunch with a “golden dessert” included.
News At Glance
- Trump landed in South Korea Wednesday for last stop of Asia tour
- Meets Chinese President Xi Jinping Thursday to talk over trade deal structure
- U.S. would reduce tariffs on Chinese products by half if China shuts down fentanyl chemicals
- South Korea trade pact stalled due to $350 billion investment framework disagreement
- Trump requested meeting with North Korea’s Kim Jong Un but received no reply
FAQs
Q: What is Trump demanding of China?
A: That China refrain from sending chemical fentanyl-making compounds abroad. In return, he will reduce the 20% tariffs on Chinese imports, perhaps half.
Q: What is the issue with the South Korea trade pact?
A: South Korea is willing to invest $350 billion in the U.S. to escape tariffs but can’t agree on the payment format. South Korea is willing to pay over time but the U.S. insists on more initial payment.
Q: Will Trump sit down with North Korea’s Kim Jong Un?
A: Trump has requested numerous times but North Korea remains silent. Kim stated he would consider a dialogue if the U.S. quits insisting that he relinquish nuclear weapons.
Q: What did Trump do elsewhere in Asia?
A: In Malaysia he signed trade deals and facilitated peace talks between Thailand and Cambodia. In Japan he met with the newly elected Prime Minister and signed trade and rare earth mineral deals.
Q: Will Trump raise Taiwan with Xi?
A: Trump said he does not know whether he will mention it. His stance on Taiwan continues to change as he negotiates with China.
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