{"id":11988,"date":"2026-04-26T09:58:56","date_gmt":"2026-04-26T09:58:56","guid":{"rendered":"https:\/\/www.europesays.com\/japan\/11988\/"},"modified":"2026-04-26T09:58:56","modified_gmt":"2026-04-26T09:58:56","slug":"japans-economy-shrank-as-a-result-of-trumps-tariffs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/japan\/11988\/","title":{"rendered":"Japan&#8217;s economy shrank as a result of Trump&#8217;s tariffs"},"content":{"rendered":"<p><a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/japan\/\">Japan<\/a>\u2018s economy contracted at a 1.8% annualized rate in the third quarter of 2025, as President Donald Trump\u2019s <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/tariffs\/\">tariffs<\/a> have caught up with the island nation\u2019s <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/trade\/\">exports<\/a>.<\/p>\n<p>Trump reached a <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/3479222\/trump-trade-deal-japan-15-percent-reciprocal-tariffs\/\">trade deal<\/a> with Japan in July, announcing a 15% baseline reciprocal tariff rate on the nation instead of the previously threatened 25% tariff rate. As part of the deal, Japan committed to invest $550 billion into the United States, including in the form of energy infrastructure, artificial intelligence infrastructure, and electronics investments.<\/p>\n<p>Japan\u2019s economy showed signs of growth earlier in the year, but <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.deloitte.com\/us\/en\/insights\/topics\/economy\/asia-pacific\/japan-economic-outlook.html\">economists<\/a> have predicted that the optimistic reports were inflated as exporters rushed to beat U.S. tariffs. Japan\u2019s largest export is vehicles, and its top destination for exports is the U.S.<\/p>\n<p>According to a government economic report, Japan\u2019s gross domestic product fell 0.4% in the July-September quarter on a quarter-by-quarter basis. The decline was the country\u2019s first contraction in six quarters.<\/p>\n<p>The annualized contraction, however, was less than expected, according to Reuters, which <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japans-economy-contracts-first-time-six-quarters-2025-11-17\/\">anticipated<\/a> a 2.5% annualized contraction this quarter. Japanese automakers have seen exports plummet, and residential housing investments have also contributed to the contraction, according to the news outlet.<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/3865862\/trump-hails-japans-new-prime-minister-says-us-is-ally-at-the-strongest-level\/\">TRUMP HAILS JAPAN\u2019S NEW PRIME MINISTER, SAYS US IS \u2018ALLY AT THE STRONGEST LEVEL\u2019<\/a><\/p>\n<p>Trump <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3866021\/trump-tokyo-trip-takaichi-japan-investment\/\">visited Tokyo<\/a> in late October during his trip through Asia to meet the new prime minister, Sanae Takaichi, for the first time.<\/p>\n<p>The conservative leader has plans to lead a revival of the Japanese economy by leading efforts on a supplementary budget for the country, according to the <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.nytimes.com\/2025\/11\/16\/business\/japan-economy-contraction.html?campaign_id=9&amp;emc=edit_nn_20251117&amp;instance_id=166579&amp;nl=the-morning&amp;regi_id=251287128&amp;segment_id=210749&amp;user_id=cacf4b228705dfb5d9ecd5ab354cf678\">New York Times<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Japan\u2018s economy contracted at a 1.8% annualized rate in the third quarter of 2025, as President Donald Trump\u2019s&hellip;\n","protected":false},"author":2,"featured_media":11989,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[3863,7044,13,191,189,8,188,190,2749,1714],"class_list":{"0":"post-11988","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-auto-industry","9":"tag-cars","10":"tag-donald-trump","11":"tag-economy","12":"tag-economy-of-japan","13":"tag-japan","14":"tag-japans-economy","15":"tag-japanese-economy","16":"tag-tariffs","17":"tag-trade"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/11988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=11988"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/11988\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/11989"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=11988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=11988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=11988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}