Japan, China, South Korea discuss free trade deal amid Trump tariffs
Illustrative photo: Japan, China and South Korea prepare for free trade due to Trump's tariffs (Getty Images)
Industry ministers from Japan, China, and South Korea have returned to the idea of free trade between their countries. This comes just days before the US is expected to introduce new tariffs worldwide, Bloomberg reports.
South Korea’s Minister of Industry Ahn Duk-geun, along with his counterparts from Japan, Yoji Muto, and China, Wang Wentao, discussed a free trade agreement on Sunday in Seoul.
It is noted that while they did not make significant progress toward such an agreement, the meeting demonstrated a growing willingness among the three countries to strengthen ties amid the impact of US tariffs.
"We especially recognized the need for ongoing trilateral economic and trade cooperation to effectively address emerging challenges and achieve tangible outcomes in key areas," the three ministers said in a joint statement.
They also pledged to strengthen the Regional Comprehensive Economic Partnership (RCEP), a framework aimed at optimizing supply chains and expanding trade and investment among Asia's largest economies, including China, Japan, and South Korea. The United States is not part of this agreement.
Trump's tariffs and expected impact
The meeting took place as a 25% US tariff on imported cars is set to take effect on April 3 at 12:01 a.m. Washington time. Notably, Japan and South Korea are major exporters of vehicles to the US.
President Donald Trump is also expected to announce so-called reciprocal tariffs, which could potentially impact industries such as semiconductors and pharmaceuticals.
Any impact on chip sales would be particularly damaging for South Korea, given that the sector remains a key driver of growth for the country's export-dependent economy, Bloomberg reports.
According to Western media, the three Asian nations are among those targeted by Trump's trade policies. While China is at the center of an escalating trade war with the US, Washington's broad use of tariffs underscores that even American allies, including Japan and South Korea, are not immune from economic threats, Bloomberg notes.
Last Friday, Chinese President Xi Jinping met with a group of global business leaders in Beijing in an effort to boost investor confidence, as rising tariffs fuel uncertainty in the economy and international trade. The meeting was attended by representatives from companies such as Samsung Electronics Co. and SK Hynix Inc.
On March 29, The Washington Post reported that President Trump has been urging his senior advisers to take a more aggressive approach to tariff policy, with an announcement expected on April 2.
Recently, it was also reported that the European Union is preparing a response to Trump's auto tariffs.
