Asia Pacific News
LAST UPDATE: August 1, 2025
Bessent to Talk China Tariff Truce Extension With Trump Thursday
U.S. Treasury Secretary Scott Bessent said the ongoing tariff truce with China is up for renewal before it expires on August 12, and that President Trump will make the final decision. Although meetings were described as constructive, no extension has been formally signed off.
Insight
The outcome is entirely dependent on Trump’s judgment. While officials see progress in reducing trade tension uncertainty, the expiration date on August 12 adds pressure. Any reversal could sharply escalate tariffs again.
Bank of Japan governor says US tariff deal a ‘big step forward’
Bank of Japan Governor Kazuo Ueda praised the new U.S.–Japan tariff agreement as a significant reduction in trade uncertainty. The BOJ held short‑term interest rates at 0.5 %, and raised its core inflation forecast for fiscal 2025 from 2.2 % to 2.7 %.
Insight
While the deal eases export pressures and supports inflation targets, Ueda cautioned that the full impact of the 15 % tariffs on Japanese exports remains unclear; rate hikes may come later this year depending on data.
South Korean Stocks Underwhelmed by 15% Tariff Deal With Trump
Despite the announcement of a 15 % tariff deal on South Korean exports to the U.S., investors appeared unimpressed. The Kospi index fell by 0.3 %, partly because the news had already been priced in. The won weakened slightly as well.
Insight
Markets expected this outcome, suggesting that the deal lacked surprise or upside. The modest tariff still signals constraints ahead for exports, but South Korea’s $350 billion investment pledge likely softened the blow.
Indian state refiners pause Russian oil purchases, sources say
State-run Indian refiners, including Indian Oil and Bharat Petroleum, have halted purchases of Russian crude from the spot market. This follows U.S. President Trump’s July 14 warning that countries importing Russian oil may face 100 % tariffs.
Insight
Indian oil strategy is shifting amid waning Russian discounts and potential tariff risks, suggesting an inward pivot toward other suppliers. The move underscores how U.S. policy can influence global energy procurement decisions.
India’s garment and jewellery sectors fear for US orders after tariff shock
Following Trump’s abrupt announcement of a 25 % tariff on Indian apparel and jewellery exports effective August 1, Indian exporters—particularly in Tirupur and Surat—are bracing for order cancellations, price hikes, job cuts, and a shift in orders to lower‑tariff countries like Vietnam.
Insight
Rapid introduction of sweeping tariffs is creating severe trade uncertainty. High exposure to U.S. buyers means Indian exporters could face structural losses unless bilateral dialogue restores confidence quickly.
Thailand Seeks Neutral Venue for Border Talks With Cambodia
Thailand has formally requested moving the August 4 General Border Committee meeting with Cambodia to Malaysia, citing the need for a neutral venue. The initiative follows a ceasefire mediated in Putrajaya under ASEAN’s chairmanship.
Insight
Shifting to neutral ground signals distrust between the parties. By proposing Malaysia, Thailand seeks to depoliticize talks, while international mediation may help sustain the ceasefire and prevent further escalation.
