Asia Pacific News
LAST UPDATE: July 10, 2025
Asia Trade Chiefs Travel 800 Hours to Secure Elusive US Deals
Asia’s top trade negotiators have spent nearly 800 flight hours across multiple trips to Washington, seeking a US trade agreement before punitive Trump-era tariffs come into force August 1. India, South Korea, Vietnam, and others are urging the US to finalize deals to avoid sharp tariff hikes.
Insight
Despite heavy diplomatic investment, no firm commitments have emerged—revealing both the urgency and fragility of talks. The travel blitz underscores how Asian economies are attempting to safeguard export-led growth amid rising US protectionism.
Trump’s BRICS Warning to India Adds New Twist to Trade Deal
President Trump has threatened an extra 10% tariff on BRICS countries—including India—for allegedly undermining the US dollar, even while saying a US–India trade deal is “close.” India is striving to separate its BRICS stance from trade negotiations.
Insight
The move signals US leverage over geopolitically aligned emerging economies: India must navigate aligning with BRICS carefully while pursuing bilateral benefits with the US. These dual pressures could shape the deal’s structure and terms.
South Korean adviser suggests US talks on trade, security and investment
South Korea’s National Security Adviser Wi Sung‑lac proposed bundling trade, investment, defense purchase, and security issues into a single negotiation “package” with the US during a recent Washington visit. US Secretary of State Marco Rubio agreed to the integrated approach.
Insight
Linking economic and security dialogues shows Seoul’s acceptance that trade concessions may be tied to US defense cost-sharing. This could reshape conventional trade talks into strategic, multi-issue negotiations.
Australia ‘Urgently Seeking’ Detail on Trump’s Drug Tariff Threat
Australia’s Treasurer Jim Chalmers urgently requested clarification from the US after Trump signaled up to 200% tariffs on pharmaceuticals and 50% on copper during a cabinet meeting. Australia is especially concerned over drug export exposure.
Insight
The suddenness and severity of tariff threats highlight how economic coercion is being deployed. Canberra must now balance asserting its national interests—like protecting its Pharmaceutical Benefits Scheme—while managing trade leverage.
After US tariffs, jobs hang by a thread in Bangladesh’s garments sector
Bangladeshi garment exports—making up 80% of national exports and employing 4 million—are imperiled by a new 35% US tariff. Apparel producers are losing orders to competitors like Vietnam, raising fears about factory closures and widespread job losses.
Insight
The decision exposes Bangladesh’s vulnerability to US policy shifts. Extended tariff barriers could result in economic instability for millions, triggering potential efforts by Dhaka to seek alternative markets or demand a bilateral deal.
Taiwan Signals Cautious Optimism After Avoiding US Tariff Letter
Taiwan expressed cautious optimism after the US government refrained from sending it a formal tariff warning letter, indicating that negotiations are proceeding without escalation.
Insight
The absence of formal US tariff action suggests successful diplomatic engagement and possibly tacit assurances for trade continuity. For Taiwan, avoiding classification as a “tariff target” helps stabilize investor confidence and bilateral relations with Washington.
Taiwan Holds Most Expansive Annual Drills Ever to Counter China
Taiwan has launched its largest-ever Han Kuang military exercises, extending to 10 days and involving over 20,000 reservists, live-fire drills, and new US-sourced Abrams tanks.
Insight
The expanded drills reflect Taiwan’s strategy to boost deterrence amid rising Chinese pressure. Utilizing modern US weaponry and reservist mobilization signals a shift toward readiness for gray-zone threats and large-scale contingencies.
Sri Lanka Has Space to Ease Policy Further, Weerasinghe Says
Sri Lanka’s central bank governor, Nandalal Weerasinghe, stated there is room for further easing of monetary policy if inflation remains subdued, while noting recent IMF-supported recovery.
Insight
This signals a cautious pivot toward supporting growth without fueling inflation. It reflects improving macroeconomic resilience and concerted efforts to balance recovery support with price stability.
Australia Rate Shock Puts RBA’s Radio Silence Under Scrutiny
The RBA surprised markets by keeping interest rates on hold at 3.85%, defying expectations of a cut. Its lack of accompanying commentary sparked criticism over communication gaps.
Insight
The decision highlights tension between data-driven caution and market expectations. Lack of guidance risks volatility, showing a need for clearer communication strategy to maintain credibility.
Australia’s central bank looks to expend role in national economic research
The RBA is enhancing its economic research by engaging external experts and strengthening ties with academia to better address global trade issues, climate change, and productivity slowdown. Meanwhile, it held rates at 3.85%.
Insight
The move signals a strategic shift: positioning research at the heart of policy-making to tackle structural challenges. It suggests the RBA is preparing a more informed policy toolkit amid heightened global uncertainty.
Singapore’s Gan Says Climate Action Most Uncertain in Decade
Singapore’s Deputy PM Gan Kim Yong warns that the global backdrop for climate action is the most uncertain since the 2015 Paris Agreement, citing geopolitical and economic volatility (ブルームバーグ).
Insight
Gan emphasizes that despite increased uncertainty, Singapore remains committed to long-term sustainability, signaling that nations should stay the course on climate policies even amid short-term disruptions.
India Plans to Kickstart Rare-Earth Output to Cut China Reliance
India will introduce incentives (up to ₹25 bn / $290 m) to boost domestic rare-earth magnet production, attracting conglomerates like Vedanta, JSW, Sona Comstar, aiming to reduce dependence on Chinese supply .
Insight
The policy marks a strategic shift to secure supply chains for EVs, renewables, and defense; but India will face challenges scaling up extraction and refining capacity.
