South Korea, China and Japan held their first economic dialogue in five years on Sunday, seeking to facilitate regional trade as the three Asian export powers brace from U.S. President Donald Trump’s tariffs.
The countries’ three trade ministers agreed to “closely cooperate for a comprehensive and high-level” talks on a South Korea-Japan-China free trade agreement deal to promote “regional and global trade,” according to a statement released after the meeting.
South Korea, China, and Japan recently agreed to strengthen trade cooperation amid growing concerns over potential new tariffs by the U.S., particularly if Donald Trump returns to office. The three countries held their first trilateral summit in over four years, pledging to accelerate negotiations for a free trade agreement (FTA) and enhance supply chain resilience.
Key Points of the Agreement:
- Accelerating FTA Talks – The leaders agreed to push for a trilateral free trade deal, though progress has been slow due to historical tensions and differing economic priorities.
- Supply Chain Cooperation – They committed to stabilizing supply chains, especially in semiconductors and critical minerals, reducing reliance on external markets.
- Opposition to “Decoupling” – The nations emphasized the need for open trade, rejecting economic fragmentation driven by U.S.-China tensions.
- Response to U.S. Tariff Threats – With Trump proposing steep tariffs (possibly 60% or higher on Chinese goods and universal baseline tariffs), the three countries aim to bolster regional trade as a buffer against protectionism.
Why It Matters:
- U.S. Trade Policy Uncertainty – A potential Trump reelection could disrupt global trade, pushing Asian economies to strengthen intra-regional ties.
- China’s Role – Despite tensions, China remains a critical trade partner for both South Korea and Japan, particularly in tech and manufacturing supply chains.
- Long-Term Vision – While a full FTA may take years, closer cooperation could help mitigate risks from U.S.-led trade wars.
Challenges Ahead:
- Historical & Political Disputes – Lingering tensions between South Korea-Japan and China’s trade practices could hinder deeper integration.
- U.S. Pressure – All three nations have strong economic ties with the U.S. and may face pressure to align with Washington’s policies.
This move signals a shift toward regional self-reliance as global trade faces potential upheaval from U.S. protectionism. However, the success of this cooperation will depend on overcoming political and economic differences.
