US EditionJapan's factory output slides as Trump tariffs jolt manufacturers
- Japan's factory output fell 1.1 percent in March 2025, driven mainly by a 5.9 percent decline in motor vehicle production amid US tariff pressures.
- The output drop follows the Trump administration's imposition of tariffs on Japanese goods, including a 25 percent tariff on vehicles later eased to 10 percent for 90 days.
- Manufacturers reduced production and export orders plunged to 43.1 percent as tariffs raised costs, lowered demand, and created rapid policy uncertainty described as 'tariff whiplash.'
- ISM’s manufacturing index for April fell to 48.7 percent, with the production index declining to 44 percent; chair Timothy Fiore noted that this production figure serves as a clear indicator of the adverse effects tariffs are having on the industry.
- The continued decline in factory output signals ongoing instability for manufacturers and persistent economic uncertainty amid unresolved trade negotiations between the US and Japan.
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‘We’re headed in the wrong direction’: Tariffs drive up prices, hurt output: PMI
Manufacturers pulled back on production last month as the Trump administration's volatile trade policy caused consumer confusion and a drop in demand, per the Institute for Supply Management.
First signs of Trump tariff impact on China as factory output, exports declines; worry in Japan too
The official manufacturing purchasing managers' index (PMI) slipped to 49.0 in April, falling below the 50-point threshold that separates growth from contraction and undershooting economists' forecasts
·Mumbai, India
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