Japan’s Cabinet Office plans to cut its forecast for economic growth in fiscal 2025, according to a series of reports from Nikkei. The downgrade is attributed mainly to the drag from the 145% U.S. tariff on Chinese imports that took effect in April, which is weighing on Japanese exporters and supply chains. Despite the weaker growth outlook, the Cabinet Office still intends to project a primary budget surplus for fiscal 2026, Nikkei said. A surplus would mark Japan’s first in more than a decade and suggests the government aims to balance its books through spending restraint and tax revenue gains even as the economy slows. The regional growth picture is also darkening. The South Korean government is considering forecasting 2025 gross domestic product expansion at “around the 1% level,” underscoring broader concerns that trade frictions and softer global demand are curbing momentum across North-East Asia.