In a rare show of regional unity, Japan, China, and South Korea have agreed to accelerate economic cooperation and revive stalled free trade talks, as U.S. tariffs threaten to upend global trade flows and hit Asia’s export-reliant economies.
Meeting for the first time in more than five years, trade ministers from the three nations issued a joint statement Sunday committing to “deepen trilateral cooperation” and fast-track negotiations toward a long-delayed free trade agreement.
The talks come just days before U.S. President Donald Trump is expected to unveil a new round of tariffs, which he’s called “Liberation Day,” including a sweeping 25% duty on all foreign-made vehicles and auto parts — a move that could hit Japan especially hard. “We reaffirmed the importance of working together,” Japan’s Trade Minister Yoji Muto said following the meeting in Seoul. “In the face of emerging global challenges, Japan, China and South Korea must lead the way in stabilizing the regional economy.”
Muto met with his Chinese counterpart Wang Wentao and South Korea’s Ahn Duk-geun, where the three agreed that negotiations for a Trilateral Free Trade Agreement (FTA) — stagnant since 2012 — must now gain urgency.
The ministers also jointly voiced support for the World Trade Organization and called for reforms to strengthen its role in a time of rising protectionism and fractured supply chains. “We stand by a rules-based, open and non-discriminatory trading system,” the statement read, emphasizing the need for WTO reform and stronger multilateral mechanisms.
The urgency stems from Trump’s escalating trade actions. The White House’s new tariff plan, set to take effect midnight Thursday, has already rattled Asian markets and threatens key export sectors.
According to the Japan Research Institute, the new U.S. auto tariffs alone could slash Japan’s domestic vehicle production by 4.3%, with auto exports to the U.S. making up nearly 30% of total exports in 2024.
The trilateral meeting also touched on expanding cooperation in critical areas such as supply chain resilience, digital trade, local business exchanges, and implementation of the Regional Comprehensive Economic Partnership (RCEP) — a massive trade pact among 15 Asia-Pacific nations. The U.S. is not a member.
With the three Northeast Asian nations accounting for over 20% of the global population and 23.4% of global GDP, their renewed push for closer economic coordination marks a significant counterweight to the rising tide of U.S. protectionism.
As trade tensions escalate globally, all eyes will now be on Washington this week — and how Tokyo, Beijing, and Seoul respond to the next wave of economic shocks.