Japan's government has issued a cautionary statement regarding the potential threat posed by U.S. trade policies to its ongoing economic recovery.
According to the Cabinet Office's latest monthly report, the Japanese economy is experiencing a gradual rebound, supported by moderate improvements in domestic demand and select production indicators.
While the overall economic outlook remains broadly positive, the report highlights mounting external challenges—chief among them, uncertainty surrounding U.S.
trade policy. These concerns, the government warns, could undermine Japan’s growth trajectory amid escalating global trade tensions.
In a notable shift, the report revealed that Japan has downgraded its assessment of corporate sentiment for the first time since March 2022.
This reflects a dip in business confidence, fueled by international trade volatility and increased market uncertainty.
Tokyo is currently focused on promoting economic stability and encouraging investment in a global environment marked by unpredictability.
Policymakers are closely monitoring any developments that could impact the country’s economic momentum through the rest of the year.
