Economic policy

In December of the previous year, South Korea was thrust into a political maelstrom when President Yoon Suk-yeol declared martial law in the wake of widespread protests. The decision, intended to quell escalating demonstrations over government policies and economic discontent, backfired spectacularly. Lawmakers from the Democratic Party and other opposition factions filed impeachment articles against Yoon, arguing that the extraordinary measure infringed on constitutional rights and threatened democratic norms. The Constitutional Court upheld the impeachment in April, marking only the second time in South Korea’s history that a sitting president was removed from office.

On June 3, 2025, the Fair Work Commission (FWC) delivered its annual decision on the national minimum wage and award wage rates, granting a 3.5 percent increase to both. Effective July 1, 2025, this adjustment raises the national minimum wage to $24.95 per hour (or $948 per week based on a 38-hour work week). For millions of low-paid and award-dependent workers, this equates to approximately $32 extra per week, or nearly $1,670 per year. The decision comes as inflation has settled back within the Reserve Bank of Australia’s 2–3 percent target range and follows five consecutive years of real wage declines for award-wage earners.

In a dramatic turn in the ongoing US-China trade tensions, former US President Donald Trump has claimed that Chinese President Xi Jinping reached out to him to discuss tariff-related negotiations. However, China’s Foreign Ministry has publicly denied any such communication or ongoing consultations, intensifying the diplomatic confusion and market uncertainty surrounding global trade dynamics.

In a fiery social media post on Thursday, U.S. President Donald Trump reignited tensions with Federal Reserve Chair Jerome Powell, sharply criticizing the central banker for not lowering interest rates and stating that Powell’s “termination cannot come fast enough.” The remark, delivered via Trump’s Truth Social platform, has triggered alarm across political and financial circles about the growing risk of political interference in the operations of the U.S. Federal Reserve.

Rachel Reeves will fly to Washington next week to meet her American counterpart for the first time, as the British government intensifies efforts to secure a UK-US trade deal.

Chinese President Xi Jinping has issued a stark warning against global protectionism, declaring that “trade wars and tariff wars produce no winners” as he began a three-country diplomatic tour in Southeast Asia aimed at countering the economic pressure of US tariffs.

The Trump administration has moved to exclude a wide range of electronic goods—including smartphones, laptops, and semiconductors—from sweeping reciprocal tariffs, offering a measure of relief to American consumers and tech companies amid escalating trade tensions with China and other global partners.

Calls to boycott American brands like Starbucks and KFC are rapidly spreading across Chinese social media, as patriotic fervour intensifies in response to the United States' latest tariff hikes. Chinese users on Douyin — the domestic version of TikTok — have taken to the platform in droves, urging citizens to reject US goods and rally behind domestic brands.