Here's a comprehensive summary of the provided news, formatted as requested: # Letter from Nikkei Asia's Editor: Asia on Edge as Trump Tariff Pause Nears End **Report Provider:** Nikkei Asia **Author:** Akito Tanaka **Date:** July 4, 2025 (as indicated by the publication date of the newsletter) **Topic:** Economy, Business **Keywords:** Trump tariffs, Asia, trade, economy, Japan, Vietnam, U.K. ## Executive Summary This newsletter from Nikkei Asia's Editor-in-Chief, Akito Tanaka, highlights the growing uncertainty across Asia as the **90-day pause on additional "reciprocal" tariffs imposed by the U.S. administration under President Donald Trump approaches its end this coming Wednesday.** While many countries are in negotiations to reduce tariffs exceeding the baseline 10% rate, the outlook remains uncertain, with **the U.K. and Vietnam being the exceptions, having secured deals.** President Trump's intensified criticism, particularly towards Japan, accusing it of "ripping us off for 30, 40 years," is creating significant concern. Japanese automakers like Toyota and Mitsubishi Motors are already facing the impact of a **25% additional tariff on automobiles**, leading them to raise prices in the U.S. market due to the increasing cost burden. Nikkei Asia is launching a "tariff tracker" and hosting a live webinar to analyze the expected impacts. ## Key Findings and Conclusions * **Impending Tariff Deadline:** The critical 90-day pause on U.S. tariffs is ending soon, creating significant economic anxiety in Asia. * **Uncertainty Prevails:** Despite ongoing negotiations, the future of tariffs remains largely unknown for most Asian nations. * **U.K. and Vietnam Secure Deals:** These two countries have successfully negotiated agreements with the U.S. regarding tariffs. * **Japan Faces Trump's Criticism:** President Trump has been particularly vocal in his criticism of Japan's trade practices, accusing them of long-term exploitation. * **Automotive Sector Impacted:** Japanese automakers are already experiencing the effects of a 25% tariff on automobiles, forcing price increases in the U.S. market. * **Nikkei Asia's Response:** To address the complexity, Nikkei Asia is providing resources like a "tariff tracker" and a live webinar to break down the potential impacts. ## Notable Trends and Changes * **Shifting Consumer Preferences in the Philippines:** Retailers like Robinsons Retail Holdings Inc. and SM Investments Corp. are observing that while domestic consumers are resilient, they are becoming more price-conscious and exhibiting more deliberate spending habits. * **Japan's Pivot in Robotics:** Japan is moving away from humanoid robots (like SoftBank's Pepper) towards more pragmatic applications, such as cat-eared waiters and cleaning bots, to address its severe labor shortage. * **Hong Kong's Financial Market Dynamics:** Hong Kong's financial authorities injected significant liquidity to maintain its currency peg, leading to near-zero borrowing costs. This enabled investors to exploit interest rate gaps with the U.S. through "carry trades," causing the Hong Kong dollar to fluctuate within its trading band. ## Significant Risks and Concerns * **Economic Instability in Asia:** The approaching tariff deadline and the uncertainty surrounding President Trump's decisions pose a significant risk to economic stability across Asia. * **Impact on Japanese Automakers:** The 25% tariff on automobiles is already a financial burden, and further tariff increases could exacerbate the situation for Japanese car manufacturers. * **Political Turmoil in Thailand:** Thailand's Prime Minister Paetongtarn Shinawatra faces a political crisis following her suspension by the Constitutional Court, deepening the country's turmoil and weakening her party. * **Anti-Government Protests in Thailand:** A large anti-government rally in Bangkok, demanding the Prime Minister's resignation, indicates growing political pressure. ## Other Notable Mentions * **Thai Prime Minister's Political Crisis:** Paetongtarn Shinawatra, Thailand's youngest-ever prime minister, is facing a significant political challenge. * **Philippine Retail Sector Adaptation:** Retailers are adapting to evolving consumer preferences in the Philippines. * **Japanese Robotics Innovation:** Japan is focusing on practical robotics solutions for labor shortages. * **Hong Kong Dollar Carry Trades:** Investors are leveraging interest rate differentials between Hong Kong and the U.S. * **Japanese Baseball Star Shohei Ohtani:** The newsletter mentions the global acclaim for Shohei Ohtani and the discovery of a potential Taiwanese equivalent, Lin Sheng-en. * **Anti-Government Protests in Bangkok:** A significant rally occurred on June 28 in Bangkok, demanding the resignation of Prime Minister Paetongtarn Shinawatra. This summary aims to provide a clear and concise overview of the key information presented in the Nikkei Asia newsletter, with a focus on the economic implications of the U.S. tariff policy.
Letter from Nikkei Asia’s editor: Asia on edge as Trump tariff pause nears end
Read original at Nikkei Asia →U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House on April 2. © Reuters Hello from Tokyo. The deadline for the 90-day pause on additional "reciprocal" tariffs unilaterally imposed by the administration of U.S. President Donald Trump is fast approaching this coming Wednesday.
While many countries have been negotiating with Washington to reduce the tariffs that exceed the baseline 10% rate already in place, the outlook remains uncertain -- except for the U.K., which has secured a deal, and Vietnam, which unexpectedly announced an agreement with the U.S. on Wednesday.As the tariff implementation nears, President Trump has intensified his criticism, especially toward Japan.
Earlier this week, he declared, "I'm not sure we're going to make a deal," and accused Japan of having "ripped us off for 30, 40 years." The additional 25% tariff on automobiles is already affecting Japanese automakers. With the cost burden becoming harder to absorb, companies such as Toyota Motor and Mitsubishi Motors have decided to raise prices in the U.
S. market.To help make sense of the complex and shifting Trump tariffs -- which will have significant effects across Asia -- Nikkei Asia has launched a "tariff tracker." And this coming Tuesday, just ahead of the deadline, our market team will host a live webinar to break down the expected impacts.As for what decisions President Trump -- now widely known as a flip-flopper -- will make by Wednesday, that remains to be seen.
Be sure to check back with Nikkei Asia for the latest updates.My suggested reads1. Less than a year after taking office, Thailand's youngest-ever prime minister, Paetongtarn Shinawatra, faces a political crisis. Her suspension by the Constitutional Court on Tuesday has deepened the country's turmoil and underscored the weakening of her Pheu Thai Party, founded by her father, former Prime Minister Thaksin Shinawatra.
2. Presidents of two of the Philippines' top retailers -- Robinsons Retail Holdings Inc. and SM Investments Corp. -- told Nikkei Asia that while domestic consumers are proving more resilient than expected, they are also becoming increasingly price-conscious and displaying a shift toward more deliberate spending, signaling that retailers will need to adapt to evolving consumer preferences.
3. While China and the U.S. chase ever more humanlike robots, Japan is going down a different path. The onetime leader in humanoid robots, as exemplified by SoftBank's Pepper, is now focusing on more pragmatic applications, like cat-eared waiters and cleaning bots, to address the country's severe labor crunch.
As a bonus: They're cute, too.4. Hong Kong's financial authorities injected massive liquidity into the market to keep the local currency within its pegged band, amid weakness in the U.S. dollar. This pushed borrowing costs in Hong Kong close to zero, enabling investors to exploit the U.S.-Hong Kong interest rate gap through so-called carry trades.
As a result, the Hong Kong dollar swung sharply from the stronger to the weaker end of its trading band against the greenback.5. Japanese baseball superstar Shohei Ohtani is winning global acclaim for his exploits in the U.S. major leagues. American baseball scout Jamey Storvick thinks he may have found Ohtani's Taiwanese equivalent in Lin Sheng-en, a 19-year-old phenom who hails from the Indigenous Amis people and has signed with the Cincinnati Reds.
Through the lens This week's top photo pick: Anti-government protesters rally in front of the Victory Monument on June 28 in Bangkok. Thousands gathered to demand Thai Prime Minister Paetongtarn Shinawatra's resignation over a leaked phone call linked to a border dispute with Cambodia. It was the largest anti-government rally since 2023, adding pressure to the government ahead of a possible no-confidence vote.
(Photo by Lauren DeCicca/Getty Images)Check out more of our photo coverage hereWishing you a wonderful weekend!Akito TanakaSign up for the weekly Editor-in-chief's picks newsletter here.Follow us on LinkedIn and InstagramThank you for reading this newsletter. We are taking a short break and will be back in your inboxes on Friday, July 18.
