Japan Warns 24% U.S. Tariffs Could Hit Growth Hard

- Japan highlights trade risks in June economic report. - U.S. tariffs threaten corporate profits and a moderate recovery. On June 11, 2025, Mace News and CNA reported that Japan's government reiterated warnings in its June monthly economic report regarding risks U.S. tariffs pose to economic growth and corporate profits. In this report, released on June 11, the Cabinet Office stated, "the economy is recovering at a moderate pace but confronted by the uncertainty arising from the U.S. trade policy," an assessment that has not changed for three consecutive months. The report indicated that a clearer impact on corporate earnings might emerge in the April-June quarter or later, and some companies have withheld financial forecasts due to tariff uncertainties. Moreover, Japan faces potential U.S. import levies of 24% starting in July if negotiations fail; additionally, the nation seeks an exemption for its automakers from a separate 25% import tariff on vehicles. Notably, Japan's GDP shrank by an annualized 0.2% in the first quarter of 2025. Economic Revitalization Minister Ryosei Akazawa, who leads Japan's trade negotiations, has actively engaged in talks. After his fifth round of discussions in Washington, Akazawa noted that while they made progress, Japan and the U.S. had not yet reached common ground. Furthermore, on June 10, 2025, Jiji Press reported that Akazawa was preparing to visit the U.S. again from June 14 for a sixth round of talks and also plans to attend the G7 summit in Canada. Prime Minister Shigeru Ishiba plans to hold talks with U.S. President Donald Trump during the Group of Seven (G7) summit in Kananaskis, Alberta, Canada, scheduled for June 15-17. These discussions are crucial, as Japan hopes to reach an agreement or at least a truce before the U.S. tariff grace period potentially ends. Indeed, the G7 summit itself represents a significant milestone for the trade talks. The Cabinet Office report also mentioned the spring wage negotiations, which likely resulted in an average pay raise of over 5%. While this raise could support consumption, price rises remain a risk. Separately, the government has expedited the release of its monthly economic report, possibly to update Japan's economic status before the G7 summit. According to CoinMarketCap on June 11, Ethereum (ETH) is trading at $2,620 as of 12:00 UTC, and its 24-hour trading volume has increased by 1.7%.