More German companies in Japan see the country as a manufacturing hub for Asia — and not just as a sales market — with stability, affordability and proximity to major markets cited as top draws, according to a survey by the German Chamber of Commerce and Industry in Japan (AHK Japan), the Japan Times reported. Regulatory robustness and relative affordability of operation, due to the weakness of the yen against the euro, contribute to Japan being an attractive choice for manufacturers.

The Bank of Japan said that it would start to offload its huge portfolio of exchange-traded funds, a sign of growing confidence in the economy despite challenges including President Trump’s tariffs, the Wall Street Journal reported. The multiyear program of purchases “was a necessary component of the large-scale monetary easing policy implemented to achieve the 2% inflation target,” Gov. Kazuo Ueda said at a news conference Friday. But now, with the economy improving and markets working smoothly, “there was no longer a need to continue the measure,” he said.

The negative impact of higher tariffs on Japan has become more apparent, with the country’s exports staying weak in August as U.S.-bound shipments fell further, the Wall Street Journal/em> reported. Exports to the U.S. fell nearly 14% from a year earlier due to weak demand for autos and chip-making machines, finance ministry data showed Wednesday. That compared with July’s 10.1% fall and marked a fifth straight month of decline. Japan’s trade surplus with the U.S. also contracted, tumbling 50.5% from a year ago. Japanese companies have been slashing prices on cars sold in the U.S.

The United States has officially lowered its tariff on Japanese automobiles to 15% from 27.5%, finally addressing some unfinished business that had added extra uncertainty to an already unpredictable and protracted trade war, the Japan Times reported. Japan and the United States first agreed to the reduced rate on July 22 as part of a broader deal in which "reciprocal" tariffs, which cover most other exports, were taken from 10% to 15% — but less than the 25% threatened. Reciprocal duties were formally raised to 15% on Aug. 7.

U.S. tariffs on Japanese goods including cars and auto parts are set to be lowered by September 16, Japan's tariff negotiator Ryosei Akazawa said on Tuesday, Reuters reported. Citing a U.S. Federal Register document dated September 9 that formalised President Donald Trump's executive order on the U.S.-Japan trade deal, Akazawa said in a press conference the revised tariff rates on Japanese goods will take effect within seven days from its publication.

The Japanese economy grew at a faster pace than initially estimated in the second quarter, revised data showed, confirming a fifth straight quarter of growth, the Wall Street Journal reported. Real gross domestic product expanded 2.2% on an annualized basis in the April-June period, according to official figures released Monday. That compared with preliminary estimates of 1.0%. On a quarterly basis, the economy grew 0.5%.

President Donald Trump gave Japanese automakers some relief by cutting his high U.S. tariffs on their vehicles, but the reduced levies still mean big pain for Japan's smaller car companies, which will stay under pressure in the crucial market, Reuters reported. After months of diplomacy, Trump signed an order on Thursday cutting U.S. tariffs on imported Japanese autos to 15% from 27.5%, a rare bit of good news for Japan's critical industry, which relies on the United States as its top market.

Japan and the United States are in the final stages of talks to implement lower tariffs on Japanese automobile imports within 10-14 days after the issuance of a U.S. presidential executive order, a Japanese government source told Reuters on Thursday. That means that a reduced U.S. tariff rate on Japanese cars, from the current 27.5% to 15%, is set to take effect by the end of this month, said the source, who declined to be identified as the matter is confidential.

Japan Post Bank said it would launch a digital yen by the end of fiscal 2026 to make it more convenient for its depositors to make digital financial transactions, Reuters. reported. The move by the postal giant, which holds roughly 190 trillion yen ($1.29 trillion) in deposits, highlights a growing wave of domestic entities tapping blockchain technology to streamline financial transactions.

The Japanese government reiterated concerns about the risks of U.S. trade policies to economic growth, prompting a downgrade of its view on corporate profits, in a monthly report released on Wednesday, Reuters reported. While Japan's economy grew much faster than expected in the April-June quarter, analysts warn global economic uncertainties fuelled by U.S. tariffs could weigh on the world's fourth-largest economy in the coming months.