Donald Trump has arrived in South Korea. Commercial negotiations with the Asian state, extremely difficult

US President Donald Trump landed in South Korea on Wednesday for the final leg of his Asia trip, optimistic about concluding a truce in the trade war with Chinese President Xi Jinping after talks at a meeting with South Korea's Lee Jae Myung.

Donald Trump, US President PHOTO: AFP

Arriving from Tokyo hours after North Korea tested a nuclear-capable cruise missile, Trump is due to address a summit of chief executives and meet with Lee in Gyeongju, a quiet South Korean city dotted with tombs and historic palaces.

The main item on Wednesday's agenda will be the pending trade deal between the US and South Korea, ahead of the expected meeting with Xi on Thursday, the prospect of which has already boosted global markets, the News writes.

Speaking to reporters aboard Air Force One en route to Gyeongju, Trump dismissed the North Korean missile test and said he was focused on his meeting with the leader of the world's second largest economy.

“The relationship with China is very good. So, I think we will have a very good result for our country and for the world, in fact”, Trump said.

He expects to reduce US tariffs on Chinese products in return for Beijing's pledge to reduce exports of the chemical precursor to fentanyl, he added.

After arriving in the southern city of Busan, Trump walked the red carpet, shaking hands with officials as the band played the song YMCA by the Village People, one of the US president's favorites and often played at his political rallies. He then boarded the helicopter, heading for Gyeongju.

Trade negotiations with South Korea, difficult

Trump did not mention trade negotiations with South Korea on Wednesday, with both sides downplaying the prospect of progress in talks between the leaders.

The two allies announced at the end of July an agreement under which South Korea would avoid the most severe tariffs, agreeing to invest 350 billion dollars in the United States. But the negotiations regarding the structure of these investments reached an impasse.

Trump has also pressed allies such as South Korea to pay more for defense, and South Korea has called for reforms to US immigration laws to allow more workers to build factories after a raid on a Hyundai Motor battery plant.

The leaders will discuss trade, investment and peace on the Korean peninsula in Wednesday's talks, Lee's office said, referring to the engagement with North Korea.

Trump has made repeated calls for a meeting with North Korean leader Kim Jong Un, including during this trip, but there has been no public comment from Pyongyang. Kim has previously said he may be open to talks if Washington stops pressuring him to give up nuclear weapons.

Taiwan on the agenda?

Christopher Padilla, a senior adviser at the Brunswick Group consulting firm in Washington, said that Trump, who will be absent from the APEC leaders' summit, does not approve of large international meetings and prefers individual meetings with leaders.

“But, while the US is withdrawing, most countries in the world have continued to collaborate through these institutions, considering them a useful source of cooperation in international issues”Padilla said.

Instead, Trump will deliver a speech at the APEC CEO summit, have dinner with Lee and hold bilateral meetings with leaders of several countries, including China's Xi.

Negotiators from the world's two top economies agreed on Sunday on a framework for a deal to suspend higher US tariffs and Chinese controls on rare earth exports, US officials said.

The news caused the shares to rise to record levels. Taiwan's Foreign Minister Lin Chia-lung said on Tuesday he was not concerned that Trump would “abandon” the island during his meeting this week with Xi.

Since taking office in January, Trump has oscillated in his stance on Taiwan, claimed by China, in an attempt to strike a trade deal with Beijing. Trump says Xi told him he would not invade Taiwan while the Republican president is in power, but Trump has yet to approve any new US arms sales deal to Taipei.

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

The last stop on the Asia trip

Trump arrives in Gyeongju after a whirlwind visit to the region, one of the most affected by his tariff policies and the intensification of competition between the US and China.

In Malaysia, he announced a series of trade deals and oversaw the signing of an expanded agreement between Thailand and Cambodia after a border conflict.

In Tokyo on Tuesday, Trump praised Japan's first female prime minister, Sanae Takaichi, hailing her commitment to accelerating military buildup and signing deals on trade and rare earths.

The U.S. and Japan also released a list of projects in which Japanese companies are targeting U.S. investment, linked to Tokyo's pledge earlier this year to invest $550 billion in strategic investments, loans and guarantees in the U.S. in exchange for deferring tariffs.

Washington has pressed South Korea for a similar deal, but Seoul says it cannot afford to pay the $350 billion it promised in advance. Instead, South Korea offered a combination of phased investments, loans and other measures.

On Tuesday, South Korean Foreign Minister Cho Hyun said a last-minute concession by the United States could lead to a deal.