Nvidia chip tensions and fentanyl export limits dominate Trump–Xi agenda

US President Donald Trump arrived in South Korea on Wednesday for the final leg of his Asia tour, expressing confidence in achieving a trade truce with China and finalizing a tariff deal with Seoul.

Trump’s arrival came just hours after North Korea test-fired a nuclear-capable cruise missile, but the president brushed off the provocation, saying his focus was on achieving “a very good outcome for our country and for the world.”

Tariff Talks with Xi Jinping on the Horizon

Trump is set to meet Chinese President Xi Jinping on Thursday in the port city of Busan, where the two leaders will discuss tariffs, semiconductor exports, and rare earths trade.

Speaking aboard Air Force One, Trump said he expected to reduce U.S. tariffs on Chinese goods in exchange for Beijing’s pledge to limit fentanyl precursor exports, a key stumbling block in bilateral negotiations.

According to The Wall Street Journal, Washington could halve the current 20% tariffs on Chinese imports under the proposed deal.
Beijing’s Foreign Ministry described the meeting as one that “will inject new momentum” into U.S.–China relations.

Nvidia Chip Tensions Take Center Stage

Trump also said he plans to discuss Nvidia’s Blackwell AI chip, at the heart of ongoing U.S.–China tech tensions.
“The Blackwell chip is a super-duper chip,” Trump quipped. “I think we may be talking about that with President Xi.”

Nvidia CEO Jensen Huang is expected to meet Trump in Seoul to discuss chip export issues. Although the U.S. eased restrictions earlier this year, sales of Nvidia’s H20 chips to China remain frozen pending regulatory approval.

South Korea Trade Deal Faces Final Hurdles

At the APEC CEO Summit in Gyeongju, Trump told business leaders that a trade deal with South Korea would be completed “very soon.”

However, officials said key investment frameworks remain unresolved.
Under a July framework, Seoul pledged $350 billion in U.S. investments to avoid tariff penalties, but the plan has since stalled over payment and phasing structures.

Golden Reception in Gyeongju

At a ceremony at the Gyeongju National Museum, President Lee Jae Myung presented Trump with a replica gold crown and the Grand Order of Mugunghwa  South Korea’s highest civilian honour.

“I’d like to wear it right now,” Trump joked, as Lee called him a “peacemaker on the Korean Peninsula.”

The welcome ceremony featured a military band playing “YMCA”, fighter jet escorts for Air Force One, and a 21-gun salute.
Lunch included “mini beef patties with ketchup”, a “Korean platter of sincerity”, and a “Peacemaker’s Dessert” a brownie topped with edible gold.

Trump Praises Pakistan, Credits US for Averting India-Pak War

During his address at the APEC CEO Summit, Trump claimed that U.S. diplomacy under his administration had prevented wars and advanced peace, citing cases in Cambodia, Thailand, and South Asia.

He said tensions between India and Pakistan were defused following his direct intervention.

“I said, ‘You’re starting a war with Pakistan. You have to stop the war.’ And they stopped it,” Trump recalled.

He further praised Pakistan’s leadership, calling its prime minister “a wonderful person” and its field marshal “a great warrior ,  a really great human being.”

‘We Are Establishing Peace in the World’

Trump also lauded his administration’s role in promoting peace in the Middle East and mediating accords between Cambodia and Thailand.

“We hope that this peace in the Middle East will last forever,” Trump said. “We are establishing peace in the world.”

Domestically, Trump highlighted record investment pledges worth $18 trillion, a projected $2.2 trillion inflow during his second term, and new plans to expand semiconductor production and shipbuilding in the United States.

“We’re not creating jobs through government,” he said. “Now jobs in the U.S. are created by private companies.”