China, Japan, and South Korea—three of Asia’s leading economic powerhouses—have pledged to strengthen regional trade cooperation as they brace for the impact of U.S. President Donald Trump’s tariffs, set to take effect on Wednesday, April 2.
The commitment was made during the first economic dialogue between the three nations in five years, held on Sunday.
The trade ministers of the three countries agreed to pursue comprehensive and high-level negotiations for a trilateral free trade agreement (FTA) aimed at promoting both regional and global trade.
In a joint statement released after the meeting, the ministers emphasized the importance of collaboration to mitigate the economic fallout from Trump’s tariff policies.
South Korean Trade Minister Ahn Duk-geun highlighted the need to strengthen the implementation of the Regional Comprehensive Economic Partnership (RCEP), a trade pact involving all three nations.
He stated, “It is necessary to create a framework for expanding trade cooperation among the three countries through Korea-China-Japan FTA negotiations.”
Challenges and strategic goals
Despite their shared economic interests, China, Japan, and South Korea have faced longstanding tensions over territorial disputes, which have hindered progress on a trilateral FTA since talks began in 2012.
However, the ministers acknowledged the urgency of responding jointly to global challenges, particularly in light of increasing fragmentation in the global economy.
Ahn remarked, “Today’s economic and trade environment is marked by increasing fragmentation of the global economy. It is imperative that we respond jointly to shared challenges.”
The trio agreed to hold their next ministerial meeting in Japan, signaling a renewed commitment to fostering regional trade ties.
What you should know
Trump’s upcoming tariffs, including a 25% levy on car and auto parts imports, are expected to significantly impact Asian exporters, which rank among the largest suppliers of vehicles to the U.S.
- After Mexico, South Korea is the world’s second-largest exporter of vehicles to the United States, followed closely by Japan, according to data from S&P.
- Trump has labeled April 2 as “Liberation Day,” promising additional tariffs targeting up to 25 countries.
While the three Asian nations have historically relied heavily on trade partnerships with the U.S., the tariffs have prompted them to explore alternative strategies to cushion their economies.
Outlook and next steps
The renewed dialogue between China, Japan, and South Korea marks a critical step toward enhancing regional trade cooperation amid mounting global uncertainties.
As the three nations work to finalize a trilateral FTA and strengthen RCEP implementation, their efforts could pave the way for greater economic integration in Asia.
With Trump’s tariffs looming, the ministers’ commitment to collaboration emphasized the importance of regional solidarity in navigating the challenges posed by shifting trade policies.
