Asia Pacific News
LAST UPDATE: July 11, 2025
Rubio says Asia might get ‘better’ tariffs than others
Rubio (U.S. Secretary of State) indicated that U.S. tariff rates for some Asian nations could be more favorable—“better”—than those imposed on other countries. He made the remarks during ASEAN meetings in Malaysia amidst the administration’s threat to escalate tariffs.
Insight
Rubio’s comments suggest the U.S. is using tariff negotiations as strategic leverage in Asia, seeking trade agreements before the Aug 1 deadline. It signals a selective approach, possibly favoring aligned regional partners to balance growing China influence.
Rubio Working on First In-Person Meeting With China Counterpart
Rubio said he’s arranging his first face-to-face meeting with China’s foreign counterpart, Wang Yi, during the ASEAN summit. He plans to raise issues including China’s support for Russia.
Insight
The planned in-person engagement marks a shift toward direct diplomacy under increasing geopolitical strains. By addressing Russia, Rubio is linking trade talks with broader global security concerns.
Sri Lanka to Pursue Further Talks After US Tariff Cut
After Washington imposed a reduced 30% tariff on Sri Lankan goods—lower than initially proposed—Sri Lankan officials welcomed it as a “good start” and committed to further negotiations with the U.S.
Insight
The tariff cut offers Sri Lanka strategic relief, especially for its critical apparel exports. Continued dialogue underscores its importance in recalibrating trade terms with the U.S.
Japan PM Ishiba urges less US dependence as Tokyo faces new tariffs
Prime Minister Ishiba urged Japan to reduce reliance on the U.S. in areas like security, energy, and food, as new 25% U.S. tariffs on Japanese imports come into effect from August 1.
Insight
Ishiba’s push for self-reliance reflects Japan’s intent to diversify its strategic posture amid rising trade tensions. It also highlights ongoing recalibration of Japan-U.S. relations beyond economics.
India central bank raises quantum for seven-day liquidity withdrawal operation
The Reserve Bank of India (RBI) increased its seven-day reverse repo auction to ₹2.5 trillion (~$29.2B), up from ₹1 trillion last week, pausing its 14-day operation to manage growing liquidity with a ₹3.27 trillion surplus.
Insight
RBI’s escalating liquidity absorption indicates a proactive stance to curb surplus and protect overnight rates. It reflects tightening bias amid persistent flow pressures and macro stability priorities.
