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after a charm offensive Japan Mr. President, this culminated in investment commitments of $490 billion donald trump He met with the leader of South Korea on Wednesday as a trade deal with that country appears more unclear.
Top officials in Washington and Seoul say the sticking point for the agreement is the logistics behind Trump’s demand that South Korea invest $350 billion. United States of America,
Korean officials say injecting cash could destabilize their own economy, and they will instead offer loans and loan guarantees. The country will also need a swap line to manage the flow of its currency to the US.
The disparity between what Trump is asking for and what South Korea can offer threatens to overshadow the meeting between Trump and the South Korean president. lee jae myung In Gyeongju, a historic city that is hosting the annual Asia-Pacific Economic Cooperation summit.
Trump praised their “very special relationship” during remarks at a trade forum, saying the two countries were “married.” He also said they were “very close” to an agreement.
Speaking broadly about international trade, Trump suggested a more conciliatory approach than his usual confrontational stance.
“The best deals are the deals that work for everyone,” he said.
Speaking on stage before Trump’s arrival, Lee warned of trade barriers.
He said, “At a time when protectionism and nationalism are on the rise and nations are focused on their immediate survival, words like ‘cooperation,’ ‘coexistence’ and ‘inclusive growth’ may sound hollow.” “Yet, paradoxically, APEC’s role as a forum for solidarity shines brighter in times of such crisis.”
Deputy National Security Director Oh Hyunjoo told reporters that talks were progressing a little more slowly than expected.
“We have not yet reached any agreement on issues such as the structure of investments, their format and how profits will be distributed,” he said on Monday.
This contrasts with Trump’s experience in Japan, where the government has worked to meet its $550 billion investment commitment as part of an earlier trade agreement. Commerce Secretary Howard Lutnick announced commitments of up to $490 billion during a dinner with business leaders in Tokyo.
Trump met Japan’s new Prime Minister Sanae Takaichi during his visit on Tuesday, took her with him and spoke to US troops aboard an aircraft carrier and then unveiled several major energy and technology projects in the US to be funded by Japan.
In contrast, US Treasury Secretary Scott Besant, speaking to reporters aboard Air Force One on Monday, said South Korea had no deal ready.
“There are still a lot of details to be worked out,” he said, though he suggested they were close.
Right now, South Korea is stuck with a 25% tariff on automobiles, putting automakers like Hyundai and Kia at a disadvantage compared to Japanese and European competitors, which face 15%.
Lee took office in June and had a warm meeting with Trump at the White House in August, when he extended flattery. But there have been points of tension since then, notably a US immigration raid on a Hyundai plant in Georgia in September. More than 300 South Koreans were detained, leading to outrage and feelings of betrayal.
Lee said that unless the visa system is reformed, companies will be hesitant to invest in the future.
“If this is not possible, setting up a local factory in the United States will either cause serious harm or make it very difficult for our companies,” he said. “They may wonder if they should even do it.”
South Korea’s Foreign Ministry said in early October that the US had agreed to allow South Korean workers on short-term visas or the visa waiver program to help build industrial sites in the US.
Asked about the immigration raids on Monday, Trump said, “I was opposed to kicking them out,” and he said an improved visa system would make it easier for companies to bring in skilled workers.
While in South Korea, Trump is also expected to hold a close meeting with Chinese leader Xi Jinping on Thursday. Washington and Beijing have clashed over trade, but both sides have signaled they are willing to ease tensions.
Trump told reporters aboard Air Force One on Wednesday that he hoped to ease tariffs targeting China on the flow of fentanyl materials.
“They’re going to do what they can,” he said. Trump said “China is going to work with me.”
Trump seemed resigned to the idea that he would not get a chance to meet North Korean leader Kim Jong Un on this trip. The president had previously raised the possibility of extending his stay in South Korea, but said Wednesday that “the schedule was too busy.”
North Korea has so far rejected overtures from Washington and Seoul and has said it will not resume diplomacy with the United States unless Washington drops its demands for the North’s denuclearization. North Korea said on Wednesday it fired sea-to-surface cruise missiles into its western waters in the latest display of its growing military capabilities amid Trump’s visit to South Korea.
Trump dismissed weapons testing, saying, “They’ve been launching missiles for decades, right?”
The two leaders met during Trump’s first term, although their talks did not lead to any agreement on North Korea’s nuclear program.
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Associated Press writers Kim Tong-Hyung and Heung-Jin Kim contributed from Seoul, South Korea, and Josh Bok contributed from Tokyo.