The Japanese government maintains that its economy is recovering modestly, but points to U.S. trade policy as a key factor to watch as Trump's proposed tariffs create uncertainty about the economic outlook. In its monthly economic report for February, the Cabinet Office maintained its assessment of the overall economy unchanged for the seventh month in a row, as persistent inflation, particularly for everyday goods, weakened consumption. The Cabinet Office also cited the need to closely monitor US policy, particularly on trade, with President Donald Trump expected to make a series of more detailed tariff announcements. The Cabinet Office downgraded its view on imports to "almost flat" from "showing a recent recovery trend". (Jin Ten)