Japan on Thursday lowered its official forecast for real GDP growth in fiscal 2025 to 0.7 percent, from the 1.2 percent projected in the beginning of the year, citing newly imposed U.S. "reciprocal" tariffs as a key drag on the economy. The Cabinet Office deemed factors like persistent inflation and Washington's tariff policy contributed to the downside risks of the Japanese economy. The Japanese government adjusted its export growth forecast from 3.6 percent to 1.2 percent, due to tariff impacts to Japan's auto industry and other major sectors. Capital spending by enterprises is now estimated to expand 1.8 percent, down from the previously forecast 3 percent, given that enterprises are cautious about expenditures on production capacity expansion under tariff influences. The United States' sweeping new tariffs took effect on a broad range of trade partners including Japan on Thursday. Automaker Toyota's latest financial statement said that the U.S. levies and a stronger yen will cut its fiscal 2025 net profit by about 44 percent to 2.66 trillion yen (about 17.4 billion in U.S. dollars). Kyodo News calculated that Toyota, Honda and other Japanese automakers together stand to lose roughly 2.67 trillion yen in operating profit this year because of the U.S. tariffs. SHOTLIST: FILE: Tokyo, Japan - 2024 1. Various of cityscape; FILE: Tokyo, Japan - 2024 2. Various of National Diet building, national flag; Tokyo, Japan - July 23, 2025 3. Various of traffic, pedestrians; FILE: Tokyo, Japan - Date Unknown 4. Various of port scene; ships; 5. Various of trucks, vehicles at port; FILE: Washington D.C., USA - October 2024 6. Various of White House; 7. Various of Capitol Hill, U.S. national flag; FILE: Los Angeles, USA - Date Unknown 8. Various of Port of Los Angeles. [Restrictions: No access Chinese mainland]