Japan, Britain agree to promote free trade amid Trump tariff threats

The foreign and economy ministers of Japan and Britain agreed Friday to promote free and open international trade, with concerns mounting over repercussions from U.S. President Donald Trump’s tariff threats against major trading partners.

At the first “two-plus-two” dialogue on the economy between the two countries held in Tokyo, the ministers confirmed that they will work together to address energy and security challenges, Japanese Foreign Minister Takeshi Iwaya said in remarks to the press.

Iwaya and Economy, Trade and Industry Minister Yoji Muto met with their British counterparts, David Lammy and Jonathan Reynolds.

(From L) British Business and Trade Secretary Jonathan Reynolds, British Foreign Secretary David Lammy, Japanese Foreign Minister Takeshi Iwaya and Japanese Minister of Economy, Trade and Industry Yoji Muto pose for a photo as they meet for “two-plus-two” talks in Tokyo on March 7, 2025. (Pool photo)(Kyodo)

“Sharing fundamental values, Japan and Britain will maintain cooperation to uphold and strengthen a free, fair and rules-based global economic order,” Iwaya said. Lammy emphasized that the common interests of the two nations lie “in a stable international system.”

Muto said the four reaffirmed the importance of dealing with “overproduction and economic coercion” issues by bolstering supply chains of critical materials, apparently with concerns over China’s steel and electric vehicle output.

The ministers also affirmed their commitment to deepening collaboration on reforming the World Trade Organization and supporting the clean energy transition in developing countries.

Britain is the second nation with which Japan has an economic two-plus-two ministerial framework following the United States, their common security ally. For London, Tokyo is the first partner of such talks.

The gathering comes as Trump’s long-threatened trade war is turning into reality. His administration has imposed 25 percent duties on many goods from Canada and Mexico and doubled his additional tariff on Chinese imports to 20 percent on Tuesday.

The move prompted vows of retaliation from the three countries, though the president said Thursday that he will pause until April 2 the higher tariffs on imports from Canada and Mexico that are covered by a North American free trade pact.

“It’s crucial that we counter the increasing trade fragmentation that is damaging the global economy, and that we stand up for fair, rules-based international trade,” Reynolds said, while none of the ministers directly mentioned Trump’s policies in front of reporters.

Japan and Britain, the world’s fourth- and sixth-largest economies, respectively, have been boosting their economic cooperation especially since the latter’s departure from the European Union in 2020.

In December, Britain became the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, of which Japan is also a member. The free trade pact came into force in 2018 after the U.S. withdrawal in 2017 during Trump’s first four-year presidential term.

Japanese Prime Minister Shigeru Ishiba and British Prime Minister Keir Starmer agreed to start the new economic dialogue when they met in November on the fringes of the Group of 20 summit in Brazil.

Earlier in the day, Iwaya and Lammy held a separate meeting. They agreed to continue exchanging views to realize a “fair and lasting peace in Ukraine,” which is fighting against Russia’s prolonged invasion, according to the Japanese foreign minister.

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