<h1>Japan's economy grows 1% despite US 15% tariff, exports up 2%, inflation concerns rise</h1> Japan's economy grew at a 1% annual rate in the last quarter, supported by resilient exports despite the imposition of a 15% US tariff on imports from Japan. The tariff, lower than a previously announced 25%, took effect after a 90-day pause that allowed exporters to accelerate shipments. Exports increased by 2.0%, capital investment rose 1.3%, and consumer spending grew modestly by 0.2%. Rising prices coupled with stagnant wages have prompted speculation that Japan's central bank may raise interest rates from near zero to control inflation. The tariffs have intensified political pressure on the Japanese Prime Minister amid recent electoral setbacks for the ruling coalition.