Trump Tariffs Drive Japan’s Economy into Contraction

Quarterly GDP Decline

Japan’s economy contracted by 1.8% in the latest quarter, a notable drop compared with the same period a year earlier.

Impact of U.S. Trade Measures

The slowdown is largely linked to the U.S. tariffs on Japanese automobiles, which have sharply reduced export volumes and weighed heavily on the manufacturing sector.

Outlook for Growth

Economists caution that the tariff‑induced pressure may prolong weak growth, leaving businesses and policymakers facing a challenging economic horizon.