Particle.news
Download on the App Store
10 ARTICLES
·
yesterday

US Tariffs Trigger First Drop in Japan’s Exports in Eight Months

May’s figures revealed a ¥637.6 billion trade gap with auto shipments to the US plunging just weeks before tariffs rise

Newly manufactured cars awaiting export are parked at a port in Yokohama, south of Tokyo, Japan March 27, 2025. REUTERS/Issei Kato/File Photo
Image
Image
Image

Overview

  • Japan’s merchandise exports fell 1.7% year-on-year in May, marking the first decline since September 2024 after eight months of growth.
  • Shipments to the United States dropped 11.1% overall and auto exports fell 24.7% following President Trump’s 25% vehicle tariffs and the prospect of higher reciprocal duties.
  • Exports to China slipped 8.8% and imports declined 7.7%, resulting in a ¥637.6 billion trade deficit for May.
  • Prime Minister Shigeru Ishiba’s G7 talks with President Trump failed to secure an auto-tariff exemption and duties will rise to 24% on July 9 without an agreement.
  • The Bank of Japan held interest rates at 0.5% and decelerated its balance sheet drawdown in response to growing recession risks and global trade uncertainty.