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Japanese Manufacturers Are Slightly More Optimistic Despite Trump Tariff Worries

  • Japanese manufacturers' business sentiment slightly declined to +6 in June 2025 amid ongoing uncertainties surrounding U.S. tariffs and subdued Chinese demand.
  • This cautious mood followed a rebound to +9 in April 2025, which was driven by a temporary boost in orders amid lingering concerns over shifting U.S. tariff policies and China’s economy.
  • The Bank of Japan Tankan survey, a key quarterly indicator, also showed the service-sector index steady at +30, supported by IT investments and inbound tourism despite rising labor costs and shortages.
  • Reports state that tariffs pressure manufacturers to address rigid sourcing, outdated pricing, and fragile supplier contracts by investing in flexible pricing systems and improved supply chain visibility.
  • The data suggest manufacturers must build resilience and adapt strategically to tariff-driven shocks, while the Bank of Japan will closely review these trends at its policy meeting on July 30-31, 2025.
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U.S. News broke the news in New York, United States on Monday, June 30, 2025.
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