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Japan's Economy Shrinks 1.8% Amid U.S. Tariffs

11/17/2025

23 5 Full Breakdown

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Story summary
  • Japan's economy contracted at an annualized rate of 1.8% in the July–September quarter, driven by U.S. tariffs on exports.
  • GDP fell 0.4% quarter-on-quarter, as exports dropped 1.2% while private consumption rose 0.1%.
  • Prime Minister Sanae Takaichi's government is weighing a stimulus package to ease rising living costs and support recovery.