Asia Pacific News
LAST UPDATE: September 2, 2025
Trump Says India Offered to Cut Its Tariffs to ‘Nothing’
U.S. President Trump stated that India has offered to eliminate tariffs on U.S. goods, but called the move overdue.
Insight
The comment underscores how long-standing trade imbalances and punitive U.S. tariffs have strained ties; Trump’s remark may reflect negotiation pressure rather than finalized policy.
Indian PM Modi’s tax reform set to slash levies on shampoos, hybrid cars, TVs
PM Modi’s government will cut GST by 10 percentage points across about 175 products—corporate and consumer goods, including electronics and hybrid vehicles—with decisions expected September 3–4.
Insight
This sweeping tax roll-back aims to boost domestic consumption ahead of Diwali and support local manufacturing while offsetting export pressures.
India to start commercial chip production by 2025
At the Semicon India 2025 event, PM Modi announced that India plans to begin commercial semiconductor chip production by the end of 2025.
Insight
This marks a major step toward India’s semiconductor self-reliance and global positioning as a chip-manufacturing hub.
Japan PM to ask ministers to compile economic package, Sankei says
PM Shigeru Ishiba will ask his ministers to prepare a stimulus package—including possible cash handouts—and seek a supplementary budget, to tackle inflation and U.S. tariffs.
Insight
The move signals a proactive response to economic pressures at home and growing impacts from global trade tensions.
BOJ must keep raising rates but focus on global uncertainty, deputy gov says
Deputy Governor Ryozo Himino said the Bank of Japan should continue raising interest rates, while remaining cautious amid high global economic uncertainty.
Insight
It reflects the BOJ’s balanced approach to tightening monetary policy, ensuring inflation gains are sustainable amid external risks.
South Korea’s Inflation Hits Nine-Month Low
In August 2025, Korea’s CPI rose just 1.7% YoY, the lowest since November 2024, while monthly prices fell 0.1%, below expectations.
Insight
With inflation easing below target levels, the central bank is expected to continue cutting rates to support slowing growth.
Indonesia Finance Minister’s Reassurance Helps Stabilize Markets
Finance Minister Sri Mulyani pledged policy improvements after protests escalated, including looting of her house, in an effort to reassure markets.
Insight
Amid civil unrest fueled by economic grievances, the government highlights its commitment to stability and investor confidence.
Protesters, Economists Doubt Indonesia’s Rosy Economic Data – WSJ
Despite strong official GDP and poverty figures, protests and expert skepticism suggest the data may not reflect widespread economic hardships.
Insight
The disconnect raises concerns over data credibility and highlights underlying structural issues driving unrest.
Thai Senate Clears Budget as Parties Scramble to Form Government
Thailand’s Senate approved a 3.78 trillion baht annual budget, offering relief to investors amid rising political uncertainty.
Insight
The passage lends short-term fiscal stability, but the ongoing scramble to form a coalition underscores persistent political fragility.
Trade adds slightly to Australia’s Q2 growth, but government spending underwhelms
Net exports added 0.1 percentage point to Q2 GDP, while stagnant government spending limited overall growth.
Insight
Weak fiscal traction despite export support may push the RBA toward additional monetary easing to sustain momentum.
