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Trump, Xi Poised for APEC Trade Talks Tying Tariff Relief to Fentanyl Controls

North Korea's cruise missile launch sharpened the backdrop, with U.S.–South Korea tariff talks nearing conclusion.

Overview

  • Trump and Xi are scheduled to meet Thursday in South Korea after negotiators outlined a framework to pause further U.S. tariffs and Chinese export curbs.
  • A reported proposal under discussion would reduce part of the 20% fentanyl‑related tariff by up to about 10 percentage points if China tightens precursor chemical controls.
  • Trump said he expects a "very good outcome" from the talks and indicated tariff relief could be linked to Beijing’s fentanyl steps, according to remarks to reporters.
  • A separate U.S.–South Korea deal centered on roughly $350 billion in investment for lower reciprocal tariffs remains unresolved, though Trump said it will be finalized "very soon."
  • Hours before Trump’s arrival, North Korea test‑fired ship‑launched cruise missiles into western waters; KCNA claimed success, South Korea’s Joint Chiefs confirmed the launch, and analysts read it as a likely signal against a TrumpKim meeting.