Japanese Manufacturers Show Cautious Optimism Amid Tariff Concerns
April 16, 2025 - 08:10
Japanese manufacturers displayed a slight improvement in business sentiment for April compared to March, yet remain wary of their future outlook due to the looming effects of U.S. import tariffs. According to a recent poll that aligns with the Bank of Japan's quarterly business survey, the sentiment index for manufacturers rose to plus 9 in April, a notable recovery from the minus 1 recorded in March.
The survey was conducted between April 2 and April 11, coinciding with U.S. President Donald Trump's announcement of a 25% tariff on car and truck imports, alongside a 24% tariff on certain Japanese goods, which has since been reduced to 10% for a temporary period of 90 days. Despite the positive shift in current sentiment, manufacturers are approaching the next three months with caution, anticipating the potential repercussions of these trade measures on their businesses.
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