Japan's economy grows at a 1% pace in the last quarter despite Trump's higher tariffs
The U.S. has imposed a 15% tax on imports from Japan. That's higher than before for some products but down from the 25% tariff Trump announced earlier.
Real gross domestic product, or GDP, which measures the total value of a nation's goods and services, expanded 0.3% in the fiscal first quarter compared to the previous quarter, beating analysts' estimates.
It was Japan's fifth straight quarter of growth.
Japan's exports grew 2.0% in the period, according to preliminary data from the Cabinet Office. A 90-day pause on higher tariffs for most goods and most trading partners enabled companies to rush some exports to try and beat the higher import duties.
But the 15% tariffs took effect as of last week, closing that window.
A surge in visits by foreign tourists has also helped, though it has also raised resentment among some Japanese upset over various aspects of dealing with outsiders.
Apart from exports, capital investment rose 1.3% from a year earlier, helping to drive faster growth. But consumer spending remained relatively weak, growing just 0.2%.
Prices have been rising steadily while wages have stagnated.
The stronger than expected economic performance in the last quarter raises the likelihood that Japan's central bank may push ahead with raising its benchmark interest rate from its longstanding level near zero to help cap inflation.
The higher tariffs that Trump has imposed to try to get companies to increase manufacturing in the United States have added to pressure on Prime Minister Shigeru Ishiba, who is facing calls to resign after the ruling Liberal Democrats and their coalition partner the Komeito failed to win majorities in both houses of the parliament.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
a minute ago
- Bloomberg
Difficult to See Bessent Size Rate Cut: Kathy Jones
US Treasury Secretary Scott Bessent made his most explicit call yet for the Federal Reserve to execute a cycle of interest-rate cuts, suggesting the central bank's benchmark ought to be at least 1.5 percentage points lower than it is now. However, Schwab Center for Financial Research Chief Fixed Income Strategist Kathy Jones says it is difficult to make the case for a big cut unless they are looking for the economy to fall off a cliff. She speaks with Vonnie Quinn on 'Bloomberg Markets.' (Source: Bloomberg)
Forbes
a minute ago
- Forbes
Why Empathy Is The Operating System For Change
Work is changing—fast. AI is rewriting task loads. Org charts are flattening and reforming. Markets are in constant flux on any given day. And humans are feeling it. These humans are working in your organization and are responsible for ensuring your success. Gallup's latest global snapshot shows 'only 21% of employees were engaged in 2024, manager engagement fell to 27%, and just 33% of employees say they're 'thriving' in life overall' — and disengagement alone 'cost the world economy an estimated $438 billion' last year. That's not a soft-skills problem; that's an ROI and productivity problem. Meanwhile, headlines boast a 'back to toughness' posture among organizational leaders—mandates, cuts, and less patience for 'feelings.' As Business Insider reports, some leaders are rolling back pandemic-era empathy practices, pushing return-to-office and cost controls despite evidence that productivity gains are coming 'in part from AI efficiencies.' Employees will remember how they're treated at this moment. And when employees are not seen, heard, and valued, engagement, innovation, and productivity suffer.. Here's the hard truth: All of this transformation is about classic change management. And change management is human management. When bringing people along on any change, this requires getting back to human essentials: listening, collaboration, and empathy. Empathy isn't coddling; it's a strategic tool that keeps people whole, focused, and performance-focused while you rewire the plane mid-flight. And no, organizations cannot outsource that human capital work to AI. Consider two more realities: What Empathy Looks Like in Practice (and Why It Works) 3 Moves Leaders Can Make This Quarter 1. Implement Empathy Practices That Scale Start every change sprint with a 'context + care' brief: what's changing, why it matters to customers, what it means for jobs, and where people can get help. Make manager 1:1s non-negotiable (15 minutes, weekly) with two prompts: 'What's blocking you?' and 'What's one change I can make to help this week?' Track participation and themes; publish quick wins. These rituals boost perceived care and reduce friction in adoption. When empathy is modeled, acknowledged, and rewarded, it sets the tone for everyone that this is how success happens here. 2. Invest in Training for 'EPOCH' Skills—Especially for Managers Run micro-labs on empathy interviewing, decision transparency, ethical judgment with AI, and constructive dissent or feedback. Tie completion to manager goals; assess via behavior checklists (e.g., 'names the tradeoff,' 'offers rationale,' 'invites counter-evidence,' "solicits other viewpoints'). Assess if engagement and well-being are on the rise in teams led by trained managers, who have previously shown the sharpest declines. Then you know that the training is working. 3. Measure What Matters: Engagement + Wellbeing in the Same Dashboard Pair your engagement pulse with wellbeing indicators ('thriving,' 'struggling,' 'suffering,' burnout risk, perceived organizational care). Segment by role and change exposure; intervene fast where thriving is low and change is high. Treat spikes in 'struggling' as an early-warning signal for missed deadlines, high turnover, and declining quality. Bottom line: AI, shifting generations, competitive pressures, and volatile markets aren't going away. Your sustainable advantage is a culture where people - especially your managers - feel respected, informed, and equipped to adapt. That's not 'being nice.' That's how to fortify your team to win.
Bloomberg
a minute ago
- Bloomberg
What Drives Trump's DC Takeover
When President Donald Trump declared a federal takeover of Washington, DC's law enforcement this week, he framed it as an emergency order to crack down on crime and disorder. But threaded through his announcement was a broader vision for the aesthetic transformation of the US capital: He promised to 'clean up' the city by removing homeless encampments and graffiti. And he talked about grandiose projects like his plan to build a new golden ballroom in the White House. Trump's twin obsessions with crime and ornament hark back to a Gilded Age movement known as City Beautiful: In the 1890s, urban reformers sought to reshape major US city centers, often razing poor and Black communities to make way for gleaming gardens and plazas. In the South, urban beautification came hand-in-hand with building memorials to the Confederacy. More than a century later, Trump is using DC's unique relationship with the federal government to revive that playbook. Read more from Kriston Capps today on CityLab: Trump's Politics of Urban Disgust
