TOKYO (AP) — Japan’s economy fell at an annual rate of 1.8% from July to September, government data showed Monday. President Donald Trump’s Tariffs The country’s exports soared.
According to the Cabinet Office, on a quarterly basis, Japan’s gross domestic product (GDP, the total value of the country’s goods and services) fell by 0.4%, the first decline in six quarters.
The annual percentage rate shows what would happen to the economy if the same interest rate continued for one year. The decline was still smaller than the 0.6% decline expected by the market.
Exports suffered a major drop in the quarter, down 1.2% from the previous quarter.
Some companies had accelerated exports as much as possible to counter the tariffs, inflating some previous export statistics.
At an annualized rate, exports fell by 4.5% in the three months to September.
Imports decreased by 0.1% in the third quarter. Personal consumption increased by 0.1% in the quarter.
The tariffs are a major blow to Japan’s export-dependent economy, led by powerful automakers such as Toyota Motor Corporationnevertheless such manufacturers They have been moving production overseas for years to avoid the impact of tariffs.
The United States currently imposes a 15% tariff on almost all imports from Japan. Previously, the customs duty was 25%.
Japan has also recently faced political uncertainty. Sanae Takaichi He was appointed prime minister in October.
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