Newsletter N°81 - October 2025 

After an unexpectedly solid second quarter for the Japanese economy, the first impacts of the newly imposed, negotiated U.S. tariffs are beginning to appear, particularly in the automotive industry. Business sentiment among manufacturers, however, remains positive, with hopes that conditions may turn out better than initially feared. The Japanese government has also maintained its cautiously optimistic basic assessment of the economy.

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In South Korea, exports exceeded expectations even as U.S. tariffs began to take effect and reduced shipments to the American market. Semiconductor exports, which account for roughly one-fifth of Korea’s total export value, reached record highs, fueled by the global boom in artificial intelligence.

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In China, much attention is focused on the economic boost expected from the upcoming National Day holidays starting October 1.

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Provinces are competing creatively to attract consumer spending, while neighboring countries prepare for a massive influx of mainland travelers. Around 300 million daily trips are anticipated during the eight-day break. This expected surge in domestic consumption could offer a glimmer of hope as key indicators continue to reflect weak demand amid ongoing U.S.-China tensions.