Seoul: U.S. President Donald Trump arrived in South Korea on Tuesday, marking the final stop of his Asia tour that has focused heavily on trade negotiations and regional security. His visit comes at a tense moment, as North Korea test-fired a nuclear-capable cruise missile just hours before his arrival, heightening regional anxieties.

Trump is expected to meet South Korean President Lee Jae Myung in Seoul to discuss trade relations, defense cooperation, and peace efforts on the Korean peninsula. The visit also precedes his much-anticipated meeting with Chinese President Xi Jinping, where talks are expected to center on reducing U.S. tariffs in exchange for Beijing’s commitments to limit the export of fentanyl precursor chemicals and stabilize trade flows.

However, negotiations between Washington and Seoul over a major investment deal have hit a roadblock. The proposed agreement, valued at around 350 billion U.S. dollars, aims to boost South Korean investments in the U.S. in exchange for tariff relief. Disagreements remain over payment timelines and financial guarantees, with South Korean officials warning that an upfront cash injection could destabilize their economy.

South Korea faces the delicate challenge of balancing its economic ties with China against its security alliance with the United States. Trade officials in Seoul have said their priority is to diversify supply chains and reduce dependence on any single economic partner while maintaining stability in the region.

North Korea’s recent missile test underscored the fragile security environment. According to South Korean military sources, Pyongyang launched several long-range cruise missiles into the Yellow Sea that flew for more than two hours. Analysts say the timing was deliberate, intended to send a political message during the high-profile visit.

As Trump continues his diplomatic push in Asia, the outcomes of these talks will likely shape the direction of U.S. trade and security policy in the region. While no major agreements are expected immediately, the visit highlights South Korea’s pivotal role at the crossroads of U.S.-China competition and the continuing threat from the North.