Newsweek World
  • Business
  • Economics
  • Markets
  • Technology
GO ADD-FREE
  • Login
No Result
View All Result
  • Business
  • Economics
  • Markets
  • Technology
No Result
View All Result
Newsweek World
  • GO ADD-FREE
  • Login
Home Economics

Japan’s Economy Contracts as U.S. Trade Tensions Take Toll

Marco Sorenson by Marco Sorenson
May 16, 2025
in Economics
Japan’s Economy Contracts as U.S. Trade Tensions Take Toll

The first quarter of the year saw Japan’s economy decline by 0.7% annually because of export weakness and rising U.S. trade policy uncertainties.

The first quarterly decline in twelve months emerged from government data which revealed a 0.2% decrease between January and March. The main drag came from exports, which fell by 2.3% on an annual basis. Capital investment experienced a significant 5.8% increase but consumer spending remained stable.

The trade war initiated by former President Donald Trump continues to impact Japan’s economy through its implementation of high tariffs on imported goods including Japanese products. The tariffs imposed by the United States have created dual challenges for Japan because they affect both domestic manufacturing operations and Japanese products produced abroad in Mexico and Canada.

S&P Global Ratings stated that regional automakers face significant risk due to their exposure. The report stated that rising operational expenses together with supply chain disruptions would decrease revenue even for businesses that operate mainly outside U.S. markets.

Japanese firms together with government officials face difficulties in planning because of the unpredictable nature of U.S. trade policy. Major exporters from Japan face an unpredictable global market because of changing U.S. trade policies and shifting tariff regulations.

The recent economic contraction in Japan has caused concern about long-term growth stability because of external market pressures. The economic stagnation in Japan may continue to worsen because of ongoing trade dispute escalation according to economic analysts.

Tags: Japan
Previous Post

Starbucks Baristas Strike Over New Dress Code Policy

Next Post

Novo Nordisk CEO Steps Down as Drugmaker Faces Market Setbacks

Related Posts

Pending US Home Sales Beat Forecasts Despite Rate Worries
Economics

Pending US Home Sales Beat Forecasts Despite Rate Worries

Fed Rule Change May Unlock $6 Trillion for Banks
Economics

Fed Rule Change May Unlock $6 Trillion for Banks

Fed Moves to Ease Leverage Rules for Big Banks
Economics

Fed Moves to Ease Leverage Rules for Big Banks

JPMorgan Warns of Stagflation Risk From Tariffs
Economics

JPMorgan Warns of Stagflation Risk From Tariffs

U.S. Tariffs Drive Up Packaging Costs for Food Producers
Economics

U.S. Tariffs Drive Up Packaging Costs for Food Producers

Trump’s CFPB Rollback Cost Consumers $18 Billion, Groups Say
Economics

Trump’s CFPB Rollback Cost Consumers $18 Billion, Groups Say

Next Post
Novo Nordisk CEO Steps Down as Drugmaker Faces Market Setbacks

Novo Nordisk CEO Steps Down as Drugmaker Faces Market Setbacks

Newsweek World
Linkedin Instagram X-twitter Facebook
Business >
Economics >
Markets >
Technology >

Company
About us
Authors

Company
About us
Authors

Contact
Contacts

Terms of Use
Terms & Conditions
Privacy Policy

Editions:
World
U.S. Edition
New York
Español
中文 (简体)
Português
Français
Italiano
Norsk
Svenska
Türkçe

Contact
Contacts

Terms of Use
Terms & Conditions
Privacy Policy

© 2025 Newsweek World.
All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business
  • Economics
  • Markets
  • Technology

© 2025 Newsweek World. All rights reserved.

  • Español
  • Português
  • 中文 (简体)
  • 日本語
  • Français
  • Italiano
  • Norsk
  • Svenska
  • Türkçe