Trade Shock in Court: Two US small businesses (a spice retailer and a watch seller) have sued over Trump’s new Section 301 tariffs on about 60 trading partners, arguing the administration is using forced-labor claims to impose duties on “99.4% of all imports” without proper legal authority. Japan’s Policy Response: Japan’s government called the tariffs “regrettable,” while the broader move is already drawing backlash from allies and raising uncertainty for exporters across Asia-Pacific. FX and Inflation Pressure: Japan’s economic white paper flags imported inflation from Middle East-linked oil costs and worsening labor shortages, as the yen remains under strain and markets watch for possible currency action. Japan Governance for Disasters: Japan’s parliament passed a law creating a “secondary capital” framework so key national functions can shift outside Tokyo after a major earthquake or disaster. Market Integrity Watch: Japan is considering oversight for the fast-growing Pokémon trading card market as financialization fuels counterfeiting, tax fraud, and money-laundering risks. Business Restructuring: Nippon Paint plans to reorganize Japan operations by dissolving its Surf Chemicals unit and folding parts of the business into other group companies from 2027.