China, Japan, and South Korea Strengthen Trade Ties Amid U.S. Tariff Threats

China, Japan, and South Korea have pledged to enhance regional trade cooperation as they prepare for the impact of U.S. tariffs, which are set to take effect on April 2. The agreement was reached during the first economic dialogue between the three nations in five years, where trade ministers discussed strategies to mitigate the potential economic fallout from U.S. President Donald Trump’s new tariffs. A trilateral free trade agreement (FTA) is now being pursued to bolster both regional and global trade.

In a joint statement, the ministers emphasized the importance of collaboration to counter the effects of Trump’s tariff policies. South Korean Trade Minister Ahn Duk-geun underscored the need for a stronger commitment to the Regional Comprehensive Economic Partnership (RCEP) and stressed the importance of expanding trade cooperation through ongoing Korea-China-Japan FTA negotiations. The countries aim to create a framework that allows them to respond more effectively to global economic challenges.

While the three nations share economic interests, they have been held back by longstanding territorial disputes that have delayed FTA discussions since 2012. Despite these tensions, the ministers recognized the urgency of uniting against the growing fragmentation in the global economy. They agreed to hold their next meeting in Japan, signaling a renewed commitment to improving regional trade relations.

The looming tariffs, especially a 25% levy on car and auto parts imports, are expected to significantly affect Asian exporters, with South Korea and Japan being major vehicle suppliers to the U.S. Faced with these pressures, the three countries are seeking alternatives to reduce dependence on the U.S. and explore new trade avenues. Their efforts to strengthen regional trade cooperation could lead to greater economic integration in Asia, serving as a strategic response to shifting global trade dynamics.

Source: Naira metrics