Japan’s Economy Shrinks More than Expected as US Tariff Hit Looms

Japan’s economy contracts fuelling recession risks, but it was shrinking even before Trump tariffs

The decline was steeper than economists' median forecast of a 0.3% contraction, raising the risk of a technical recession if further pressure from US tariffs materialises this quarter, according to a report

Japan's economy suffered its first quarterly contraction in a year between January and March, as preliminary data showed on Friday, and analysts warned that Donald Trump's tariffs could lead the country to a recession if no agreement is reached.The 0.2% inter-quarterly contraction was more than expected and will be a blow to Prime Minister Shigeru Ishiba before the parliamentary elections in July, with voters already angry at inflation and corru…

Japan’s economy shrinks more than expected as US tariff hit looms

US tariffs cloud the outlook for Japan's export-heavy economy, particularly for the mainstay automobiles sector. Read more at straitstimes.com.

The contraction of GDP and the stagnation of private consumption are of concern to analysts.Read more The Japanese economy faces challenges due to tariffs and stagnant consumption in Actualidad.es.

The minister in charge of Econ revitalization and chief negotiator of the Japanese government on tariff matters, Ryosei Akazawa, said this Friday that from the executive branch they will carefully monitor the impact of the American grave menes, after that Jap n recorded in the first trimester of 2025 its first contraction ec mica in an a o.