Japan's Economic Contraction Deepens Amid U.S. Tariffs and Investment Decline
Japan's economy experienced a significant contraction in the July-September period, shrinking at an annual rate of 2.3%, according to a report by the Japanese government. This downturn is attributed to the impact of tariffs imposed by U.S. President Trump and a decrease in public investments. The revised data indicates a more severe contraction than initially reported, with the previous estimate showing a 1.8% annual decline. Exports fell by 1.2% during the quarter, while private residential investment dropped by 8.2%, influenced by changes in Japan's building code. The U.S. had earlier reduced tariffs on Japanese imports from 25% to 15%, but the tariffs on autos continue to pose a challenge to Japan's economy. In response, Japan has committed to investing $550 billion in the U.S. as part of the tariff negotiations. 
