Trump tariffs are uniting South Korea, Japan, and China
What's the story
In a major diplomatic move, South Korea's Trade Minister Ahn Duk-geun met his Japanese and Chinese counterparts to discuss a free trade agreement in Seoul today.
The trade ministers of the three countries agreed to "closely cooperate for comprehensive and high-level" talks on a potential free trade agreement (FTA) between South Korea, Japan, and China.
The decision comes as they brace themselves for the impact of new tariffs proposed by US President Donald Trump.
Trade strategy
Ministers stress need for enhanced trade cooperation
Minister Ahn stressed the need to strengthen the Regional Comprehensive Economic Partnership (RCEP), which includes all three countries.
He proposed establishing a framework for greater trade cooperation among them through FTA talks.
This was their first economic dialog in five years, and was aimed at promoting regional trade amid uncertainties over Trump's tariffs on imports from these countries.
Tariff impact
US tariffs pose challenges for Asian nations
Trump's recent announcement of 25% import tariffs on cars and auto parts has raised concerns among South Korea, Japan, and China.
These countries are the US's major trading partners and significant vehicle exporters to the country.
South Korea is the world's largest exporter of vehicles to the United States after Mexico, followed by Japan.
The proposed tariffs could potentially disrupt these trade dynamics.
Economic outlook
China continues to welcome foreign investment
Despite the looming trade war with the US, China continues to welcome foreign investment.
President Xi Jinping recently met with global business leaders in Beijing, including executives from two major South Korean companies - Samsung Electronics Co.'s Jay Y. Lee and SK Hynix Inc. Chief Executive Officer Kwak Noh-jung.
The meeting was aimed at boosting investor sentiment amid rising tariffs, creating uncertainty for China's economy and international trade relations.