For the first time in five years, South Korea, China, and Japan convened for high-level economic discussions on Sunday, aiming to bolster regional trade as they prepare for the potential fallout from U.S. President Donald Trump’s impending tariffs.

Following the meeting, the three nations' trade ministers issued a joint statement affirming their commitment to "closely cooperate for comprehensive and high-level negotiations" toward a South Korea-Japan-China free trade agreement that would enhance both regional and global commerce.

RCEP and Trilateral Trade Talks Take Center Stage

South Korean Trade Minister Ahn Duk-geun underscored the importance of strengthening the Regional Comprehensive Economic Partnership (RCEP)—a trade pact involving all three countries—and pushing forward with free trade agreement (FTA) discussions to create a more robust framework for economic collaboration.

"It is essential to advance the implementation of RCEP and accelerate Korea-China-Japan FTA negotiations to expand trade cooperation among our nations," Ahn stated.

The timing of the meeting is particularly significant, as it comes just days before Trump’s planned tariff announcement on Wednesday—an event he has controversially dubbed “Liberation Day”, signaling a dramatic shift in Washington’s trade policies.

Navigating Trade Tensions Amid Political Strains

Despite their shared economic interests, Seoul, Beijing, and Tokyo have long-standing disputes, ranging from territorial disagreements to Japan’s discharge of treated wastewater from the Fukushima nuclear disaster. These tensions have slowed progress on a trilateral FTA since negotiations began in 2012.

Nevertheless, all three countries remain key trading partners for the U.S. and stand to be significantly affected by Washington’s new protectionist stance.

Trump's Auto Tariffs and the Impact on Asian Economies

Last week, Trump imposed a 25% import tariff on cars and auto parts, a decision that could deal a heavy blow to Asian automakers, who are among the largest suppliers to the U.S. market.

According to S&P data, South Korea ranks as the second-largest exporter of vehicles to the United States, trailing only Mexico, while Japan follows closely behind.

With these developments threatening to reshape global trade flows, the renewed cooperation among South Korea, China, and Japan signals a strategic push to mitigate risks and reinforce economic stability in the Asia-Pacific region.