U.S. President Trump announced that a 25% tariff would be imposed on imported products from Japan starting August 1. Hidetoshi Tashiro, chief economist of Japan Unlimited LLC, stated that if the 25% tariff is broadly applied to other categories of goods, it would pose a fatal blow to manufacturers in almost all industrial sectors in Japan. In fact, this impact has already started to emerge, as many small and medium-sized enterprises producing components for large corporations have seen their orders cut off. The issue is no longer 'may happen,' but 'is happening.' This will deal a devastating blow to the overall Japanese economy. Recently, Japan's Cabinet Office released the May Economic Climate Index, indicating that the overall assessment of the economic situation has turned to 'deteriorating' for the first time since July 2020, suggesting a high likelihood that the Japanese economy is in a recession.