TOKYO — Japan\u2019s economy contracted at an annual pace of 2.3% in the July-September period, the government reported Monday, as exports suffered from the impact of U.S. President Donald Trump\u2019s tariffs and public investments slipped.<\/p>\n
The decline in Japan\u2019s gross domestic product, or the sum value of its goods and services, translates to a 0.6% on-quarter fall, and marked a lowered revision from the preliminary data released last month<\/a>, which had shown a drop of 1.8% at an annual rate, or 0.4% on-quarter, according to the Cabinet Office.<\/p>\n The annualized rate shows what the economy would have done if the same rate were to continue for a year.<\/p>\n Exports dropped 1.2% in the quarter<\/a> compared to the previous quarter, unchanged from the preliminary figure, while private residential investment fell 8.2%, slightly less than the 9.4% fall seen in the earlier data.<\/p>\n Trump implemented higher tariffs on imports from many countries earlier this year.<\/p>\n In September, the U.S. lowered the tariffs surcharge on nearly all Japanese imports<\/a> to 15% from an earlier plan for a 25% tariff. The tariffs on autos are a serious blow<\/a> to Japan\u2019s economy. Japan<\/a> has promised to invest $550 billion in the United States, in an accommodating move announced during the tariff negotiations.<\/p>\n Analysts say the drop in private residential investment observed in the July-September quarter was mainly due to revisions of Japan\u2019s building code that caused housing starts to plunge from earlier this year.<\/p>\n Imports slipped 0.4% during the quarter, while private consumption gained 0.2%, according to revised data.<\/p>\n The tariffs have strained bilateral ties between Japan and the U.S., its most important alliance partner.<\/p>\n