Transpacific Bound

Transpacific Business

Merz Asked Japan to Back a Trade Alliance

Germany’s chancellor pitched a like-minded trade club in Tokyo on October 28. Japan and Germany also signed cooperation papers that day. Neither step lowers a duty.

Thomas ReedNovember 2, 20266 min
German Chancellor Friedrich Merz in a dark overcoat and glasses standing outdoors at the Chancellery
Friedrich Merz outside the Chancellery in Berlin on November 27, 2025, with Estonia’s Kristen Michal. His Tokyo trade pitch was October 28, 2026. Photo: Stenbocki maja, CC BY 4.0

The pitch in Tokyo

Last Wednesday in Tokyo, German Chancellor Friedrich Merz asked Japan to join a club that does not exist yet. At a German-Japanese business summit, he floated a global alliance of like-minded governments to defend trading rules. If someone breaks those rules, or squeezes another country with economic pressure, members “could coordinate our actions within the alliance and present a united front,” he said in prepared remarks reported by Reuters.

He did not name Washington or Beijing. Companies that buy in Asia, sell in Europe, and clear cargo into the United States still heard the point: tariffs and supply-chain pressure are the daily weather, and Merz wants partners who answer them together. He carried the same idea through Singapore and on to South Korea. China’s foreign ministry, asked about the proposal, said it hoped Germany and the European Union would be “objective and rational.”

The alliance is a proposal. The declarations are signed. Neither one cuts a tariff.

The papers that exist

That afternoon Merz sat with Prime Minister Sanae Takaichi. Japan’s government summary says they issued a leaders’ statement plus two cooperation declarations—one on economic security, one on advanced technology. Those documents are signed. They do not enroll Japan in Merz’s alliance, and they do not rewrite a tariff schedule.

The economic-security paper is the one factory desks will feel first: harder supply chains, more work on critical minerals, protection for sensitive technology. The technology paper points at fusion, hydrogen, and a new high-level talk on artificial intelligence. Takaichi also told Merz Japan has strong concerns about the European Union’s Industrial Accelerator Act, and asked Brussels for a fairer answer. Allies can still argue about subsidies.

Their joint statement says both sides want closer work on rules-based trade with like-minded partners. That sentence is diplomacy. It is not a membership announcement, and it has no launch date.

What changes on a shipment

If the alliance ever gets a roster and a playbook, a coordinated reply to a tariff or an export curb could change how you route a box or price a contract. Five days after Tokyo, there is still no list of members and no start date. Do not rebuild the freight plan around a club that has not been formed.

What you can track now is narrower. Germany and Japan put minerals and technology protection on paper. Merz also pushed Europe to keep talking with the Trans-Pacific trade group known as CPTPP, and to restart a possible deal with ASEAN, the Southeast Asian bloc. Stacking those pacts could help some companies later. Today they are meeting schedules.

A real trade arrangement that moves the duty line names the parties, publishes a text, and sets a date when rates change. Merz asked for political cover against coercion. Tokyo signed cooperation with Berlin. Plan this month’s factory and this month’s freight against the rules already in force.

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