Shipments from automakers in particular plummeted, following a period of hiking exports before tariffs came into effect.

Japan has reported its economy contracted at a 1.8% annual pace in July-September as President Donald Trump’s tariffs hurt exports

The Japanese economy shrank 1.8 percent from the same quarter last year as U.S. tariffs dampened automobile exports and prompted a bleak outlook for growth.

Weakness to bolster Prime Minister Sanae Takaichi’s case for further stimulus to support struggling households

HONG KONG -- China will suspend imports of Japanese seafood, according to ABC News partner NHK, escalating a diplomatic dispute triggered by Japanese Prime Minister Sanae Takaichi’s recent comments suggesting Tokyo could take military action if China attacks Taiwan.

Japan’s economy sank at an annualized rate of 1.8% in the July-September period, government data showed Monday, as President Donald Trump’s tariffs sent the nation’s exports spiraling.

Expectations for more stimulus have been growing since Sanae Takaichi—a known fiscal expansionist—won the leadership election of Japan’s ruling party last month.

Japan's GDP shrank by 0.4% quarter-over-quarter in Q3 2025. This reversed an upwardly revised 0.6% growth in the second quarter and marked the first quarterly drop since Q1 2024, experiencing its firs

Japan’s economy contracted less than expected in Q3 2025 as domestic consumption offset weak exports, though trade tensions, housing pressures, and strained China relations continue to pose risks.

Real gross domestic product shrank 0.4% on a quarter-over-quarter basis, further complicating the timeline of the central bank’s next interest-rate hike.

An opening attempt to cool tensions between China and Japan appears to have fallen flat, signaling that the diplomatic spat is likely to drag on and stoking concerns about further strain in economic ties.