Tokyo, Nov 17 (AP) Japan's economy sank at an annualised rate of 1.8 per cent in the July-September period, government data showed on Monday, as President Donald Trump's tariffs sent the nation's exports spiralling.

On a quarter-by-quarter basis, Japan's gross domestic product, or GDP, or the sum value of a nation's goods and services, slipped 0.4 per cent, in the first contraction in six quarters, the Cabinet Office said.

The annualised rate shows what the economy would have done if the same rate were to continue for a year. The fall was still smaller than the 0.6 per cent drop the market had expected.

A big decline during the quarter came in exports, which were 1.2 per cent down from the previous quarter.

Some businesses had sped up exports, when they could, to beat the tariffs kicking in, inflating some of the earlier data for exports.

On an annualised basis, exports dropped 4.5 per cent in the three months through September.

Imports for the third quarter slipped 0.1 per cent. Private consumption edged up 0.1 per cent during the quarter.

Tariffs are a major blow to Japan's export-reliant economy, led by powerful automakers like Toyota Motor Corporation, although such manufacturers have over the years moved production abroad to avert the blunt of tariffs.

The US now slaps a 15 per cent tariff on nearly all Japanese imports.

Japan also faced political uncertainty recently, until Sanae Takaichi became prime minister in October. (AP) OZ OZ

Tariffs on imports drive export decline and GDP contraction, forcing production shifts and trade adjustment. US tariff measures on Japanese goods reduced external demand and caused a quarterly GDP contraction, driven by marked export declines; some firms accelerated shipments to avoid tariffs, while imports and private consumption showed marginal movement. The export-reliant economy, despite overseas production by major manufacturers, experienced timing distortions in trade flows and heightened economic uncertainty following recent political change.