Trump courts allies in Asia as high-stakes China summit looms

U.S. President Donald Trump touched down in South Korea on Wednesday, concluding a week-long Asian tour that will culminate in a closely watched Thursday meeting with Chinese President Xi Jinping amid efforts to de-escalate their trade war.

Catch up: Trump’s tour through the region has featured elaborate welcomes and significant economic concessions from governments eager to secure favorable terms. In Malaysia, which staged choreographed dance performances, the president saw the signing of an expanded Thailand-Cambodia ceasefire. In Japan, newly elected Prime Minister Sanae Takaichi orchestrated a full military honor guard, lunch featuring “American” beef and rice, and a carrier visit to the USS George Washington, where she committed to boosting defense expenditures and announced plans to nominate Trump for the Nobel Peace Prize. In exchange for these gestures, Tokyo secured 15% tariffs, down from an initial 25% threat, by committing to $550 billion in American investments.

Latest developments: In his discussions with Lee, Trump declared the two nations have “pretty much finalized” a trade agreement, though final terms are still being worked out. Seoul’s deal structure mirrors Japan’s arrangement of accepting 15% tariffs while pledging $350 billion in American investments. However, South Korean officials have resisted paying the entire sum immediately and are pushing for changes to U.S. immigration policy.

The main focus remains Thursday’s meeting with Xi. At Wednesday’s APEC CEO summit, Trump projected confidence about the Busan sit-down, saying, “I think we’re going to have a deal. I think it will be a good deal for both.” Washington may reduce its 20% fentanyl-linked tariffs on Chinese exports by half, which would lower overall tariffs from 55% to around 45%, in return for Beijing’s crackdown on chemical precursor exports and renewed soybean purchases that China suspended during the trade conflict.

How China is responding: Beijing has carefully framed its position as projecting strength. While Treasury Secretary Scott Bessent indicated after weekend talks that China would postpone rare earth export restrictions and that the threatened 100% tariff escalation was “effectively off the table,” Chinese officials have not publicly confirmed these characterizations. When Beijing confirmed Wednesday that Xi will meet Trump, the statement only used diplomatic language and did not convey optimism on any imminent deals. Separately, China and ASEAN members finalized an upgraded free trade agreement on Tuesday as Premier Li Qiang promoted regional integration as an alternative to U.S. protectionism.

The big picture: The week’s events exposed the uncomfortable reality of Asian leaders deploying extraordinary measures to curry favor with Trump and his unpredictable policies. Most recently, South Korea prepared a “golden dessert,” a replica gold crown and its highest honor, the Grand Order of Mugunghwa, for Trump, making him the first U.S. president to receive it.

For countries facing punishing tariffs, there are limited options beyond competitive displays of flattery and multibillion-dollar investment commitments. This reality effectively grants one individual an outsized influence over regional economic policy. Amid such challenges, these leaders must also maintain crucial relationships with China.

Trump leaves South Korea Thursday following his meeting with Xi, with unresolved questions remaining about Taiwan policy, semiconductor export approvals including Nvidia’s Blackwell chips, and the potential transfer of TikTok’s U.S. operations.