U.S. President Donald Trump is optimistic about finalizing a trade agreement during his discussions with China’s President Xi Jinping at the APEC summit in South Korea.

Trump is gearing up for his initial encounter with Xi in his second term, scheduled for tomorrow. He expresses confidence in securing an agreement that could delay increased U.S. tariffs if China agrees to ease its export controls on essential minerals.

“I believe there’s a strong possibility of reaching a comprehensive agreement,” Trump stated this week aboard Air Force One, as he embarked on a three-country tour in Asia.

He further noted that both the Chinese and the U.S. administrations are eager to finalize a deal.

Although the APEC summit will take place in Gyeongju, the crucial meeting between Trump and Xi is anticipated to occur in Busan.

This dialogue comes after months of turbulent exchanges in the trade conflict between the U.S. and China, which have caused significant disruptions in the global economy.

Trump was infuriated earlier this month after Beijing imposed new export controls on rare earths used in technology and threatened to hike retaliatory tariffs to sky-high levels.

Trump said last week he might ask Xi about freeing Jimmy Lai, a pro-democracy newspaper founder, saying “it’ll be on my list.”

The US president’s three-nation Asia tour was yesterday focused in Tokyo, where he addressed American troops on the aircraft carrier the USS Washington alongside Japan’s new Prime Minister Sanae Takaichi.

Prime Minister Anthony Albanese is also heading to South Korea for the APEC summit from Malaysia – where he, Trump and other national leaders were attending the ASEAN meeting.

Albanese said South-East Asia was becoming increasingly important for Australia’s economy.

“In recent years, we’ve doubled our trade with this region, that means more jobs for Australians, more economic activity in Australia, as well as a more prosperous and secure region.”

Albanese’s visit wrapped up with a minor malfunction when a light fell from the ceiling during talks with Malaysian Prime Minister Anwar Ibrahim.