Japan may cut growth forecast on U.S. tariff impact

Published 25/06/2025, 11:14
Japan may cut growth forecast on U.S. tariff impact

Investing.com - Japan’s government is considering lowering its economic growth forecast for the fiscal year ending March 2026 due to expected negative impacts from U.S. tariffs on global demand, according to Reuters report on Wednesday.

The current projection of 1.2% expansion, established at the end of last year, could be reduced to below 1%, the report said.

Japanese officials plan to finalize the revised economic projections around the end of July, with developments regarding U.S. tariffs factoring heavily into their calculations, the sources indicated.

The government produces economic growth estimates twice yearly, with the summer projection serving as a foundation for drafting the following fiscal year’s state budget.

The potential downward revision reflects growing concerns about how trade tensions and protectionist policies might hamper Japan’s export-dependent economy as global demand faces headwinds from higher tariffs.

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