U.S. and Chinese leaders are expected to sign a trade deal in their first meeting since 2019.
Gyeongju, South Korea – U.S. President Donald Trump says he expects to reach a “big deal” with China during a high-stakes meeting with Chinese President Xi Jinping.
In a wide-ranging, rambling speech delivered on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on Wednesday, President Trump said the anticipated trade deal would be good for both countries and would be “very exciting for everyone.”
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“It’s a really great result. It’s better than fighting and going through all kinds of problems,” President Trump said in a speech at a business luncheon held on the sidelines of the APEC meeting in Gyeongju.
“There’s no reason for that.”
President Trump is scheduled to meet with President Xi on Thursday in the coastal city of Busan, about 85 kilometers south of Gyeongju, marking their first face-to-face meeting since the U.S. president launched his second trade war with China.
Trump, who is on the final leg of a six-day Asian tour, last met with Xi in 2019 during the Group of 20 (G20) summit in Osaka, Japan.
President Trump, who arrived in South Korea after visiting Japan and Malaysia, did not provide details of the expected agreement.
But President Trump, speaking on Air Force One early Wednesday, said he hoped the deal would resolve “many issues” and include lower tariffs on Chinese goods in exchange for Beijing taking steps to curb fentanyl production.
President Trump has imposed 20% tariffs on Chinese products because the Chinese government has not cracked down on the distribution of chemicals used to make deadly opioids.
U.S. officials have previously indicated that a deal would likely include a postponement of China’s planned export restrictions on rare earth minerals, 100% U.S. tariffs on Chinese goods, and a commitment from Beijing to buy more U.S. agricultural products.
China’s Foreign Ministry confirmed on Wednesday that Xi would meet with President Trump, but did not specifically mention the agreement.
“During this meeting, the two leaders will have in-depth communication on strategic and long-term issues and common concerns related to China-US relations,” Spokesperson Guo Jiakun said at a regular press conference.
“We look forward to working with the US side to aim for a positive outcome in this meeting and strive to bring new direction and momentum to the stable development of China-US relations,” he said.
President Trump also said Wednesday that a trade deal with South Korea is “almost done.”
Kim Yong-beom, a close aide to South Korean President Lee Jae-myung, later told reporters that the United States had agreed to reduce tariffs on cars and auto parts to 15%.
Kim said the $350 billion investment package that South Korea had earlier promised in exchange for tariff cuts would consist of $200 billion in direct cash payments and $150 billion earmarked for shipbuilding “cooperation.”
Close treaty allies South Korea and the United States have struggled to finalize a trade deal due to disagreements over the content of investment pledges.
Earlier, President Trump welcomed the South Korean-led expansion of Hanwha’s Philadelphia Shipyard in Philadelphia, Pennsylvania.
South Korean shipbuilder Hanwha Ocean announced in August that it would spend $70 million to expand a shipyard it acquired last year.
“This will be one of the most successful shipyards anywhere in the world,” President Trump said.
