Japan's parliament on Friday approved a JPY 21.3 trillion economic stimulus package on Friday to support the economy amid persistent inflation and the impact of U.S. tariffs. The plan allocates JPY 11.7 trillion, including tax breaks, to ease the burden of rising prices, while JPY 7.2 trillion will fund investments in strategic sectors such as semiconductors, artificial intelligence, and shipbuilding. To finance the measures, the government will compile a supplementary budget of JPY 17.7 trillion from its general account, surpassing the roughly JPY 13.9 trillion extra budget for fiscal 2024 and marking a new post-pandemic high. Lawmakers aim to finalize the supplementary budget later this month.