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Japanese Manufacturers Are Slightly More Optimistic Despite Trump Tariff Worries

  • The Bank of Japan's Tankan survey released on July 1, 2025, showed big manufacturers' business confidence steady at +13 in July-September, matching April-June.
  • This followed a backdrop of economic challenges including a shrinking economy in Q1 2025, weak consumption, and ongoing U.S. tariffs on Japanese exports.
  • The survey also reported slight worsening in big non-manufacturers' sentiment to +34, rising cost of living squeezing consumption, and cautious expectations for business conditions ahead.
  • Large corporations anticipate raising their capital spending by 11.5% in the fiscal year ending March 2026, surpassing previous estimates despite ongoing uncertainties related to U.S. trade measures.
  • Overall, the Tankan reflects cautious optimism amid external risks, with the BOJ having raised short-term rates to 0.25% in July and preparing to review economic forecasts at its upcoming meeting.
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Japanese manufacturers are slightly more optimistic despite Trump tariff worries

Business sentiment among large Japanese manufacturers has improved slightly, according to a survey by Japan’s central bank, despite persisting worries over President Donald Trump’s tariffs.

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U.S. News broke the news in New York, United States on Monday, June 30, 2025.
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