China, Japan, and South Korea – three of Asia’s largest economies – have pledged to deepen regional trade cooperation as they prepare for the impact of U.S. President Donald Trump’s new tariffs, set to take effect on Wednesday, April 2.
During their first trilateral economic dialogue in five years, held on Sunday, the trade ministers of all three nations agreed to pursue a comprehensive free trade agreement (FTA) to bolster economic resilience and reduce reliance on the U.S. market.
Strengthening Regional Trade Amid U.S. Pressure
In a joint statement following the meeting, the ministers stressed the importance of economic unity in mitigating the fallout from Washington’s aggressive trade policies. South Korean Trade Minister Ahn Duk-geun underscored the need to reinforce the Regional Comprehensive Economic Partnership (RCEP)—a trade pact involving all three nations and other regional economies.
“It is necessary to create a framework for expanding trade cooperation among the three countries through Korea-China-Japan FTA negotiations,” Ahn stated.
Challenges and Strategic Goals
Despite the shared economic interests of China, Japan, and South Korea, longstanding political and territorial disputes have slowed progress on a trilateral FTA since talks began in 2012. However, the urgency of responding to global economic fragmentation has reinvigorated efforts to bridge differences and work toward economic stability.
Ahn highlighted this urgency, saying, “Today’s economic and trade environment is marked by increasing fragmentation. It is imperative that we respond jointly to shared challenges.”
To demonstrate their renewed commitment, the three nations agreed to hold their next ministerial meeting in Japan, marking a step toward deeper regional cooperation.
Impact of U.S. Tariffs on Asian Exporters
Trump’s new tariff package, including a 25% levy on imported cars and auto parts, poses a significant threat to Asian exporters—especially South Korea and Japan, which are among the largest suppliers of vehicles to the U.S..
According to S&P data, South Korea is the second-largest exporter of vehicles to the U.S. after Mexico, with Japan following closely behind. The new tariffs could disrupt supply chains and dampen economic growth in the region.
Trump has labeled April 2 as “Liberation Day”, promising additional tariffs on up to 25 countries, further escalating trade tensions.
What’s Next for China, Japan, and South Korea?
The renewed push for a trilateral FTA and stronger RCEP implementation signals a shift toward greater regional self-reliance. As global trade policies evolve, China, Japan, and South Korea are positioning themselves to navigate economic uncertainties and reduce dependence on the U.S..
With Trump’s tariffs looming, their commitment to regional cooperation underscores the importance of solidarity and proactive economic strategies in an increasingly volatile global market.
