Tokyo: The Japanese economy has moderately recovered, while the auto sector continues to struggle due to US trade policies, the Japanese government announced on Monday.
According to Yemen News Agency, the Japanese economy experienced faster-than-expected growth during the April-June period, marking the fifth consecutive quarter of expansion. However, the country's economic outlook is clouded by potential risks stemming from US tariffs and domestic political uncertainties. This comes as Japan prepares for the Liberal Democratic Party leadership election in early October, where a successor to outgoing Prime Minister Shigeru Ishiba will be chosen.
The Japanese Cabinet Office, in its latest monthly report, highlighted the impact of US trade policies, particularly on the auto industry. The report noted that the US had agreed to impose a 15 percent tariff on Japanese imports, a reduction from the initially threatened 27.5 percent on cars and 25 percent on most other goods. Despite the lower tariffs, the rates are still significantly higher than the previous 2.5 percent, posing challenges for Japan's auto sector.
The Japanese government has upgraded its assessment of consumer spending for the first time since August 2024. The report indicated that private consumption, which constitutes more than half of Japan's economy, is showing signs of improvement. This positive trend is attributed to a boost in consumer sentiment following the US tariff agreement.