Japans economy experienced a significant downturn, contracting at an annualized rate of 1.8% between July and September. This decline, the first in six quarters, is primarily due to US tariffs causing a drop in Japanese exports. Despite a smaller quarterly drop than predicted, exports fell by 4.5% annually. The 15% tariff on nearly all Japanese imports poses a significant challenge, especially for export-reliant sectors like automakers. Private consumption also barely increased, adding to the economic strain. This comes after a period of political uncertainty, with Sanae Takaichi becoming prime minister in October.
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