China, South Korea and Japan agree to strengthen free trade

China, South Korea, and Japan agreed Sunday to strengthen free trade in response to a series of new tariffs imposed by U.S. President Donald Trump. The agreement was reached at a meeting of top trade officials—the first at that level in five years—just days before the implementation of tariffs on a wide range of U.S. imports, including cars, trucks, and auto parts.

South Korea and Japan, both major auto exporters, are expected to be significantly affected by the tariffs, while China has also been hit hard. The meeting was attended by South Korea’s industry minister Ahn Duk-geun, Japan’s trade official Yoji Muto, and China’s Wang Wentao.

The three countries called for an acceleration of negotiations for a comprehensive trilateral free trade agreement and agreed to create “a predictable trade and investment environment,” according to a joint statement.

South Korea’s Ahn emphasized the need for the three countries to respond “jointly” to shared global challenges. “Today’s economic and trade environment is marked by increasing fragmentation of the global economy,” he said.

Japanese trade official Yasuji Komiyama highlighted the growing uncertainties in international trade, stating, “The international environment surrounding us is constantly changing, and uncertainties are increasing.”

Chinese official Wang Liping warned of the spread of “unilateralism and protectionism” and stressed that China, Japan, and South Korea must take responsibility for safeguarding the multilateral trading system. He noted that the three countries collectively account for 20 percent of the world’s population, 24 percent of the global economy, and 19 percent of global merchandise trade.

Meanwhile, Trump has pledged to introduce tariffs tailored to each trading partner starting April 2 to address what he considers unfair trade practices. However, he told reporters last week that there would be “flexibility,” which provided some relief to markets at the end of the week.