May freeze S Korea trade deal for North Korea talks: US Prez

President Donald Trump on Friday threatened to hold up the trade agreement his administration finalised this week with South Korea in an effort to gain more leverage in potential talks with North Korea.

Speaking on infrastructure in Ohio, Trump highlighted the recently completed renegotiation of the Korea-US free trade agreement. But he warned: "I may hold it up until after a deal is made with North Korea."

The announcement comes as the two Koreas have announced plans to hold bilateral meetings next month in advance of a possible meeting between Trump and North Korea's Kim Jong Un by the end of May.

Trump noted the "rhetoric has calmed down" with North Korea, but added he may put a hold on the first trade agreement concluded by his administration, "because it's a very strong card and I want to make sure everyone is treated fairly." Trump did not explain what leverage the US would achieve by holding up the trade deal with South Korea. The South Korean embassy in Washington declined to comment. The liberal government in Seoul wants Washington to engage with Pyongyang to help foster inter Korean relations and reduce nuclear tensions.

Trump may be suggesting that a prospective nuclear deal with North Korea is desired by South Korea, so by delaying it the US could extract better trade terms with the South. But chances of a nuclear deal remain deeply uncertain. Typically, the US has sought solidarity with South Korea to resist attempts by North Korea to divide the allies. Resurrecting the complex and politically charged issue of trade could prove distracting just as the US is pursuing high-stakes diplomacy with Pyongyang.

The president's visit to Ohio was meant to be a push for upgrades to the nation's aging roads and bridges. Instead, Trump turned what was billed as a "major speech" on infrastructure into 53-minute campaign-style rally, with talk of defeating the Islamic State and caring for veterans, not to mention a plug for the television reboot of "Roseanne." He highlighted his plan deploying USD 200 billion in federal money to spur at least USD 1.5 trillion in spending over a decade to repair or replace highways, bridges, ports, airports and other infrastructure.