Japan’s economy has contracted at an annual pace of 2.3% in the July-September period, as exports suffered from the impact of U.S. President Donald Trump’s tariffs and public investments slipped
ByYURI KAGEYAMA AP business writer
December 7, 2025, 9: 11 PM
TOKYO — Japan’s economy contracted at an annual pace of 2.3% in the July-September period, the government reported Monday, as exports suffered from the impact of U.S. President Donald Trump’s tariffs and public investments slipped.
The decline in Japan’s gross domestic product, or the sum value of its goods and services, translates to a 0.6% on-quarter fall, and marked a lowered revision from the preliminary data released last month, which had shown a drop of 1.8% at an annual rate, or 0.4% on-quarter, according to the Cabinet Office.
The annualized rate shows what the economy would have done if the same rate were to continue for a year.
Exports dropped 1.2% in the quarter compared to the previous quarter, unchanged from the preliminary figure, while private residential investment fell 8.2%, slightly less than the 9.4% fall seen in the earlier data.
Trump implemented higher tariffs on imports from many countries earlier this year.
In September, the U.S. lowered the tariffs surcha