Live Updates > Live Update Details
2025-07-29 16:52:13
[The Tariff Conundrum of the Japanese Economy: Agreement Reached, But Shadows Remain?] ⑴ On the afternoon of July 29th, Beijing time, the Japanese government stated that the conclusion of a trade agreement with the United States has, to some extent, alleviated the uncertainty caused by Trump's tariff rhetoric. ⑵ The agreement reduces tariffs to 15% from the initially proposed 25%, providing some breathing space for related industries. ⑶ In its July monthly economic report, the Japanese Cabinet Office maintained its overall assessment of a "moderate recovery" in the economy, but noted that Trump's tariff rhetoric has had an impact on some sectors, such as automobiles. ⑷ Although automobile export prices to the United States have fallen significantly since April, officials stated that there is currently no clear indication that tariffs have led to substantial changes in export volumes, the manufacturing price index, or employment. ⑸ Although short-term risks have eased, the Japanese government emphasized that downside risks to the economy remain and that the potential impact of US trade policies must be continuously monitored. ⑹ The report also noted that the Cabinet Office's downward revision of its export assessment for the first time in a year primarily reflects a slowdown in semiconductor manufacturing equipment exports to Taiwan and South Korea. ⑺ It is worth noting that the Japanese government remains optimistic about private consumption, which accounts for more than half of the economy, and believes that it is recovering.
