Japan Industrial Production Rises in February 2025 Amid Trade Pressure
Date: 31-mar-2025
Japan’s industrial production rose by 2.5% in February 2025, the fastest monthly growth in nearly a year. This recovery comes after a four-month slump, as manufacturers responded to looming U.S. tariffs on Japanese auto exports by ramping up production ahead of potential cost hikes.
Automotive Sector Leads Growth
The automobile industry was the primary driver behind the output surge. With the U.S. preparing a 25% tariff on imported Japanese cars, automakers accelerated output to safeguard exports. Analysts expect similar defensive moves in the coming months if trade talks fail to de-escalate.
Government Eyes Coordination
Finance Minister Shunichi Suzuki emphasized Japan’s willingness to maintain close coordination with the U.S. on foreign exchange and trade matters, acknowledging the growing uncertainty in global markets. The Japanese yen has also shown volatility amid these developments.
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More details are available via Reuters.
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