US President Donald Trump began the final leg of his Asia trip in South Korea on Wednesday, expressing optimism about resolving key trade issues with Chinese President Xi Jinping and finalizing a tariff deal with South Korean President Lee Jae Myung.

Trump arrived from Tokyo just hours after North Korea test-fired a nuclear-capable cruise missile, but brushed off the provocation, saying he was focused on achieving “a very good outcome for our country and for the world.”

His highly anticipated meeting with Xi Jinping is set for Thursday in the port city of Busan, where discussions will center on tariffs, chip exports, and rare earths trade.

US, China inch toward tariff truce amid Nvidia chip dispute

Speaking aboard Air Force One, Trump said he expects to reduce US tariffs on Chinese goods in exchange for Beijing’s commitment to limit exports of fentanyl precursor chemicals — a major sticking point in ongoing negotiations.

According to The Wall Street Journal, the US could halve the current 20% levies on Chinese imports as part of the arrangement. Beijing’s Foreign Ministry confirmed that the meeting “will inject new momentum” into bilateral ties and promote “positive outcomes.”

Trump also said he will speak to Xi about Nvidia’s cutting-edge Blackwell AI chip, which has been at the heart of US-China tech tensions. Washington has restricted Nvidia from selling its most advanced chips to China, citing national security concerns.

“The Blackwell chip is a ‘super-duper’ chip,” Trump told reporters. “I think we may be talking about that with President Xi.”

Nvidia CEO Jensen Huang is also expected to meet Trump in Seoul to discuss chip exports. Despite a temporary easing of restrictions earlier this year, sales of Nvidia’s H20 chip to China remain frozen, pending US regulatory clarity and China’s own resistance to foreign purchases.

South Korea trade deal faces hurdles

At the APEC CEO Summit in Gyeongju, Trump told business leaders that a trade deal with South Korea would be finalized “very soon.” However, officials on both sides have been cautious, saying key investment structures remain unresolved.

In July, both nations unveiled a framework under which Seoul would invest $350 billion in the US to avoid harsh tariffs, but the agreement has since stalled over payment and phasing issues.

Meeting at the Gyeongju National Museum, President Lee presented Trump with a replica gold crown and the “Grand Order of Mugunghwa”, South Korea’s highest honour. Trump became the first US president to receive the decoration.

“I’d like to wear it right now,” Trump joked. Lee said the award recognized Trump’s role as a “peacemaker on the Korean Peninsula.”

Golden welcome in Gyeongju

Trump’s arrival was marked by an elaborate reception — a military band played “YMCA”, US and South Korean fighter jets escorted Air Force One, and a 21-gun salute honoured his visit.

Lee, wearing a gold tie symbolizing “the golden future of the alliance,” hosted Trump for a working lunch featuring “mini beef patties with ketchup,” a “Korean platter of sincerity,” and a “Peacemaker’s Dessert” — a brownie topped with gold.

The evening will conclude with a state dinner attended by the leaders of Vietnam, Australia, New Zealand, Canada, Thailand, and Singapore. Guests will be served Trump Chardonnay and Cabernet Sauvignon, produced by the Trump family winery.

Trump praises Pakistan, claims credit for ending India-Pak war threat

During his speech at the APEC CEO Summit, Trump claimed that US diplomacy under his administration had prevented wars and advanced peace globally — from Cambodia and Thailand to India and Pakistan.

He said his administration “threatened not to trade” with warring nations, leading to ceasefires “within two days.”

Citing South Asia as an example, Trump recounted calling Indian Prime Minister Narendra Modi during heightened tensions with Pakistan, allegedly after seven planes were shot down.

“I said, ‘You’re starting a war with Pakistan. You have to stop the war.’ And they stopped it,” Trump said, adding that both nations were “on the verge of a big war” before US intervention.

He went on to praise Pakistan’s leadership, saying, “The prime minister of Pakistan is a wonderful person, and the field marshal is a great warrior — a really great human being.”

'We are establishing peace in the world'

Trump boasted of his administration’s role in fostering peace in the Middle East and mediating a peace accord between Cambodia and Thailand during his recent stop in Malaysia.

“We hope that this peace in the Middle East will last forever,” he said. “We are establishing peace in the world.”

He also touted domestic achievements, including simplified energy and mining permits, record investment pledges worth $18 trillion, and an expected $2.2 trillion inflow during his second term.

“We’re not creating jobs through government,” he said. “Now jobs in the US are created by private companies.”

Trump further pledged to prevent interest rate hikes by the Federal Reserve, expand semiconductor manufacturing, and revive America’s shipbuilding industry.