Asia Pacific News
LAST UPDATE: July 9, 2025
Asian nations push for US tariff concessions before August deadline
Japan and South Korea have launched intensified negotiations with the U.S. to seek relief from planned 25% tariffs set to begin August 1, following President Trump’s letters to 14 countries. A grace period until August offers a final window for compromise.
Insight
This reflects growing anxiety among key U.S. trade partners about the economic impact of blanket reciprocal tariffs. While Washington leverages its negotiating strength, Tokyo and Seoul are pushing for sectoral exemptions—especially for industries like autos and electronics—to avoid economic disruptions.
Trump says China has been fair on trade deal
President Trump praised China as having been “very fair” in recent trade discussions with the U.S., and noted frequent direct communications with President Xi Jinping.
Insight
This positive tone marks a shift from earlier confrontational rhetoric and could signal a thaw in tariff hostilities. Yet with both nations still imposing broad tariffs, commentators caution this may be largely diplomatic posturing ahead of formal agreement terms.
Trump administration looks to ban Chinese groups from buying US farmland
The Trump administration plans new federal restrictions barring Chinese and other foreign “adversary-linked” groups from purchasing U.S. farmland. This initiative includes auditing existing holdings and may allow clawbacks of past acquisitions, citing national and food-security concerns.
Insight
This move escalates scrutiny of Chinese investment as an economic-security threat. It aligns with broader CFIUS-led foreign investment oversight but raises questions about retaliation and the boundary between security and economic openness.
Vietnam, China agree to boost trade ties as Trump tariffs hit
Vietnamese PM Pham Minh Chinh and Chinese Premier Li Qiang, at the BRICS summit, agreed to step up trade and investment cooperation—particularly in railway infrastructure—as U.S. tariffs target Vietnamese exports and third-country trans-shipments from China.
Insight
Vietnam and China are responding to U.S. trade pressure by deepening regional integration. Infrastructure projects like rail links signal a strategic pivot to reduce reliance on the U.S. market and cushion against tariff shocks.
Malaysia minister says 25% US levy is on top of 10% baseline tariff
Malaysia’s trade ministry corrected an earlier claim by its minister clarifying that a potential 25% U.S. tariff taking effect August 1 would replace—not stack on—the current 10% baseline tariff, avoiding a combined 35% rate.
Insight
The clarification aims to calm export markets and investor sentiment by removing confusion over tariff burdens. It highlights the diplomatic balancing act of signaling seriousness without triggering panic.
Japan business accuses Tokyo of ‘mistake’ in US trade talks strategy
Takeshi Niinami, CEO of Suntory and head of Japan’s Association of Corporate Executives, criticized Japan’s rigid approach in US tariff negotiations, calling it a “mistake.” He argued that by aiming for total exemption, negotiators lost leverage and now face a steeper 25% tariff from the US, whereas a 10% rate might have been acceptable.
Insight
Niinami’s critique signals growing frustration within Japan’s business community over inflexibility in trade diplomacy. His comments suggest internal pressure for a more nuanced strategy to secure more favorable terms and reflect anxiety over political timing ahead of domestic elections.
Japan says Akazawa and Bessent agree to continue tariff talks in phone call
Japan’s top trade negotiator Ryosei Akazawa spoke by phone with US Treasury Secretary Scott Bessent for roughly 30–40 minutes on July 8. Both sides agreed to “actively” continue vigorous tariff negotiations, focusing particularly on auto duties, before the August 1 tariff implementation.
Insight
The cooperative tone in this high-level dialogue marks a shift from earlier tensions. The commitment to continued talks suggests both sides see room for compromise, especially around the auto sector. It also buys Japan critical time as the tariff deadline approaches.
China risks global heavy rare-earth supply to stop Myanmar rebel victory
China has threatened to halt imports of heavy rare earths from Myanmar’s Kachin region if the Kachin Independence Army doesn’t stop its advance toward Bhamo. This area produces nearly half of the world’s heavy rare earths, essential for clean technologies. Mining disruptions and export bans have already cut supplies to China in early 2025.
Insight
Beijing’s strategy shows it is willing to use its dominance in mineral processing as a geopolitical lever. Risks of supply shortages could reshape global technological supply chains, potentially spurring buyers to diversify away from Chinese processing or source new suppliers.
Bangladesh’s forex reserves surge with record remittance, IMF loan
Bangladesh’s foreign exchange reserves reached approximately $26.7 billion as of June 30 (IMF BPM6 method), up from $20.6 billion at the end of May. This surge was driven by record remittance inflows exceeding $30 billion in fiscal year 2024–25 and receipt of a $1.3 billion IMF loan.
Insight
The reserve buildup strengthens Bangladesh’s external stability, providing a cushion of nearly five months of imports. The record remittances reflect robust diaspora engagement and economic resilience, while IMF support adds macroprudential credibility. Continued remittance growth may fuel investment and consumption.
Australia’s Albanese Heads to China as Trump Stresses Alliance
Australian PM Anthony Albanese will embark on a six-day visit to China to strengthen bilateral trade in areas like AI, green energy, and healthcare. This follows US President Trump’s emphasis on alliances. Australia will press for tariff relief and further economic engagement with both global powers.
Insight
The trip reflects Australia’s dual-track strategy: deepening economic ties with China while reaffirming security connections with the US. It highlights Canberra’s balancing act—leveraging its trade relationship with Beijing without compromising alliance commitments. The visit may also test regional alignment amid intensifying US-China rivalry.
Taiwan’s exports in June beat forecasts to hit a record again
Taiwan’s exports surged by 33.7% year-on-year in June, driven by strong growth in semiconductors, ICT products, and computer shipments. This marked another all-time high, aided by booming U.S. demand and continued strength in AI-related components.
Insight
Taiwan’s export performance underscores its dominance in high-tech supply chains and reflects global demand for AI and computing components. It also signals resilience despite weaker Chinese demand.