Japan’s economy experienced a notable downturn in the July-September quarter, contracting at an annualized rate of 1.8%, according to government data released on Monday. This marks the first economic contraction in six quarters, with the nation’s gross domestic product (GDP) declining by 0.4% on a quarterly basis. The downturn was primarily driven by a sharp decline in exports, which fell by 1.2% from the previous quarter and by 4.5% on an annualized basis. The slump in exports is largely attributed to the impact of U.S. tariffs, which have posed significant challenges for Japan’s export-reliant economy, particularly for major automakers like Toyota Motor Corp. Despite the contraction, the decline was less severe than the 0.6% drop anticipated by market analysts. Imports for the quarter saw a marginal decrease of 0.1%, while private consumption edged up by 0.1%. The U.S. currently imposes a 15% tariff on nearly all Japanese imports, a reduction from the earlier 25% rate. Japan’s recent political landscape also saw a shift with Sanae Takaichi assuming the role of prime minister in October, adding another layer of complexity to the nation’s economic outlook.