Japan’s imports shrank 5.2% year-on-year to a six-month low of JPY 8,667.7 billion in August 2025, the second consecutive monthly drop and steeper than market expectations of a 4.2% decline. It marked the fifth contraction in purchases so far this year, highlighting sluggish domestic demand and elevated input costs despite government efforts to bolster consumption and curb energy prices. By region, purchases fell sharply from South Korea (-16.3%), the EU (-18.2%), Russia (-21.1%), the Middle East (-20.3%), and the ASEAN countries (-4.6%), reflecting weaker demand for raw materials, industrial goods, and energy. In contrast, imports from the U.S. (11.6%) and China (2.1%) increased, driven by higher demand for agricultural products, semiconductors, and consumer goods. The latest data followed Washington’s late-July decision to set a baseline 15% tariff on nearly all Japanese imports, replacing the previous 27.5% rate on autos and averting a planned 25% levy on most other goods.