Beyond Trump-Xi meet in South Korea: 5 things to watch out for at Apec summit

While the meeting between US President Donald Trump and Chinese leader Xi Jinping has dominated discourse around the Apec Summit, several other significant diplomatic engagements are underway involving Japan, South Korea, and North Korea.

At a time when Trump’s policies have cast uncertainty over longstanding US allies Japan and South Korea, both nations are exploring new partnerships to bolster their global standing. They are also adopting a pragmatic approach, seeking to balance relations between the United States and China. Signs suggest they may pursue mutually beneficial ties without being constrained by contentious historical legacies.

South Korea–US trade negotiations

For host nation South Korea, a top priority appears to be securing a better trade deal with Trump — and it seems to have made partial progress.

Just hours after appeasing Trump’s appetite for accolades with the ‘Grand Order of Mugunghwa’ —the country’s highest honour— and a golden crown, South Korea announced that Trump and President Lee Jae-myung had reached an understanding to reduce US tariffs on automobiles from 25 per cent to 15 per cent.

It remains unclear whether Trump and Lee have signed a formal agreement or merely reached a broad understanding.

Trump had originally imposed a 25 per cent ‘reciprocal tariff’ on South Korean automobiles. Additionally, South Korea continues to face a 50 per cent tariff on steel and aluminium exports.

While the auto tariff reduction may offer some relief to Lee, there has been no breakthrough on another major issue in US–South Korea talks. Observers of bilateral relations had previously noted that South Korea’s pledge to invest $350 billion in the United States in exchange for tariff relief was a substantial figure — one that Lee is keen to reduce.

“Lee’s position is clear — that he can’t accept an amount as big as $350 billion. He has to try to get that down to $200 or $250 billion, but even that would be too much,” Shin Se-don, honorary professor of economics at Sookmyung University in Seoul, told Nikkei Asia.

Shin added, “The key factor will be whether Trump is willing to step back from his stance.”

South Korea’s Balancing Act

On the sidelines of the APEC Summit, South Korea faces the delicate task of balancing its ties between China and the United States.

President Lee is set for a high-stakes meeting with Chinese President Xi Jinping, marking Xi’s first visit to South Korea since 2014.

Although the two neighbours maintain strong trade relations, tensions occasionally arise due to China’s strategic rivalry with the United States. For example, in the ongoing US–China trade war, China has sanctioned five US subsidiaries of South Korean shipbuilder Hanwha Ocean.

Anti-China sentiment has been rising in South Korea, and key industries such as semiconductors, electronics, and steel are increasingly concerned about competition from state-supported Chinese firms.

Japan’s Takaichi makes her debut at world stage

The Apec Summit marks the first multilateral engagement for Japan’s new Prime Minister, Sanae Takaichi.

According to Nikkei Asia, Takaichi is expected to build on recently improved diplomatic ties with South Korea in her meeting with Lee.

The anticipated meeting is part of Japan’s broader strategy to counter a more assertive China through closer partnerships with neighbouring countries. Indications suggest that Lee may be receptive to such a partnership.

Despite previously using strong rhetoric against Japan, Lee has shown openness to closer ties and had developed a positive rapport with Takaichi’s predecessor, Shigeru Ishiba, Nikkei Asia reported.

In her first parliamentary address last week, Takaichi stated that Japan would deepen security partnerships with the United States, South Korea, and the Quad — comprising Japan, the United States, Australia, and India.

Possible Trump–Kim meeting

Speculation has emerged that Trump may meet North Korean Supreme Leader Kim Jong-Un during his visit to Asia. However, no confirmation has been provided, and Kim is not attending the Apec Summit.

Since his first term, Trump has expressed a desire to strike a deal with Kim. But no agreement materialised despite three meetings between the two leaders in 2018 and 2019.

In his second term, Trump has boasted of a “great” relationship with Kim and stated he remains open to meeting the North Korean leader.

Kim, for his part, has insisted that the United States must drop its demand for denuclearisation to initiate any dialogue.

North Korea’s belligerence

As leaders gathered across the border for the Apec Summit and analysts speculated about a potential Trump–Kim meeting, North Korea test-fired missiles off its western coast just hours before Trump’s arrival in South Korea — a provocation amid speculation of a meeting.

It was North Korea’s second missile test in a week.

State-run KCNA news agency reported that nuclear-capable sea-to-surface strategic cruise missiles flew for more than two hours before striking their target.