Japan, EU pledge deeper economic, defense ties as US tariffs hit
In a statement released after a meeting between Japanese Prime Minister Shigeru Ishiba, European Commission President Ursula von der Leyen and European Council President Antonio Costa, the two sides said they would launch a 'competitive alliance' to support 'a stable and predictable rules-based fair and free economic order.'
While neither side referred to US President Donald Trump's global tariff offensive, the announcement came hours after Tokyo confirmed it had reached a bilateral trade deal with Washington. That agreement eases a major concern for Japan's critical export sector.
The outlook is less clear for the EU, which is engaged in intensive talks with the US to avoid a tariff rate of 30 per cent threatened by Trump on most of its exports to America, unless a deal can be reached by Aug 1.
The EU-Japan statement highlighted shared interests and values but offered little detail beyond pledges to work closely together in areas such as supply chain resilience, countering economic coercion, cybersecurity and critical mineral supply including rare earth elements. No specific reference to China was made in the statement.
The Japan-EU Economic Partnership Agreement, which entered into force in 2019 to lower trade barriers, will remain the cornerstone of bilateral trade relations, the two sides said.
In one new initiative, the statement said a 'Japan-EU Defence Industry Dialogue' would be launched to foster cooperation in the defence industry, a field of growing importance as global defence budgets rise.
Von der Leyen and Costa are scheduled to visit China on Thursday, where they are scheduled to meet Chinese Premier Li Qiang. BLOOMBERG
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