TaxTMI 
TaxTMI 
Japan's economy shrinks as Trump's trade war hits exports, shakes confidence
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....apan's economy shrinks as Trump's trade war hits exports, shakes confidence<BR>PTI News<BR>Dated:- 16-5-2025<BR>PTI<BR>Tokyo, May 16 (AP) The Japanese economy contracted at an annual rate of 0.7% in the first quarter, according to government data released Friday, as US President Donald Trump's trade war hurt exports and dented consumer confidence. Japan's real gross domestic product, or the measu....
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....re of a nation's goods and services, shrank at a greater-than-expected 0.2% in January-March compared to the previous quarter in the first contraction in a year, the Cabinet Office's seasonally adjusted preliminary data showed. Exports declined at an annual rate of 2.3%. Consumer spending remained flat, while capital investment grew 5.8%. Trump's tariffs are likely to hurt Japan's giant exporter....
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....s, especially the automakers, not only for products shipped from Japan, but from other nations, like Mexico and Canada. Officials acknowledge planning a response is a challenge because Trump keeps changing his mind. “Regional automakers face increased operating costs and potential revenue losses because their US sales depend on diverse production bases and supply chains,” S&P Global Ratings s....
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....aid in a report. “Even companies with minimal sales in the U.S. could face indirect but meaningful impacts as tariffs affect global economy and consumer demand," it said. The Japanese economy has been struggling for years, plagued by weak demand as the population ages and declines, as more people stay single and have fewer children. The Bank of Japan, which kept interest rates at zero or minu....
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....s levels for years, has been gradually raising the benchmark rate, noting wages are holding up and prices are gradually rising. The latest findings, which seem to highlight the fragility of the economy, make it more likely the central bank might hold off on further rate hikes. Some analysts are advocating lowering the 10% consumption tax, which is similar to the sales tax in other nations, to he....
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....lp alleviate people's hardships. But so far Prime Minister Shigeru Ishiba hasn't said he supports the idea. Japan's national finances are under severe strain due to ballooning social welfare costs. The economy grew an annual rate of 2.4% in the last quarter of 2024. (AP) NSA NSA<BR> News - Press release - PIB....