Japan’s economy has entered a period of contraction as ongoing trade pressures linked to tariffs imposed during the Trump administration continue to weigh on export-dependent sectors. The latest data reflects weakening industrial output and declining external demand, particularly in automotive and electronics markets where American tariffs have disrupted supply chains. While domestic consumption showed modest resilience, it was insufficient to offset the downturn in international trade. Analysts suggest that prolonged uncertainty over U.S. trade policy could hinder Japan’s recovery trajectory, especially if additional measures are introduced without bilateral coordination. The yen weakened slightly against the dollar, reflecting investor caution amid rising geopolitical and economic volatility. Policymakers in Tokyo are now evaluating stimulus options to counterbalance external headwinds.
— news from The New York Times
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Trump Tariffs Push Japan’s Economy Into Contraction The New York Times