On July 2, 2025, Asian stock markets declined due to U.S. tariff threats, particularly impacting Japan's automobile sector. The Nikkei 225 index fell by 2.43%, leading the regional downturn, reflecting global concerns. (Source: Reuters, various dates)
The U.S. imposed a 25% tariff on Japanese automobiles, with plans to increase it to 24% by July 9. Japan's chief trade negotiator opposes these tariffs. Japan is considering lowering its economic growth forecast for the fiscal year ending March 2026 from 1.2% to below 1% due to reduced global demand.
The Bank of Japan (BOJ) is cautious about raising interest rates. As of July 2, 2025, the iShares MSCI Japan ETF (EWJ) traded at $74.42. Investors are closely watching the trade negotiations and potential tariff implementations, which could significantly impact the Japanese economy. (Source: Reuters, various dates)