Japan's Economy Contracts Amid Trump Tariffs | JQJO

Japan's economy unexpectedly contracted by 0.2% in Q1 2025, marking its first quarterly drop since Q1 2024 and exceeding the projected 0.7% year-on-year decline. Falling exports, exacerbated by US President Trump's tariffs on Japanese goods, are primarily responsible. Economists express concern about further slowdown, with some even suggesting a potential recession. The Trump tariffs, coupled with weak domestic consumption and an aging population, pose significant challenges to Japan's economic growth, prompting calls for increased government spending.