Japan's Exports Drop for Second Consecutive Month
(MENAFN) Japan's exports declined by 0.5% year-on-year in June, marking the second consecutive monthly decrease, according to data released by the Japanese Finance Ministry on Thursday.
The drop was mainly driven by a continued decline in automobile shipments to the United States.
This outcome was unexpected, as market forecasts had predicted a 0.5% increase in exports for the month.
At the same time, Japan’s imports increased by 0.2% in June, reversing the sharp 7.7% fall observed in May. The increase in imports indicated a partial recovery, but still contrasted with the sluggish export performance.
Exports to the United States, which represented 28.3% of Japan’s shipments in 2024, dropped by 11.4% year-on-year in June, worsening from an 11% decline in May.
A significant contributor to this was the 26.7% fall in auto exports to the US, which was even steeper than the 24.7% decrease recorded in May.
Furthermore, Japan also saw a reduction in exports to China, its largest trading partner, with a 4.7% drop in June compared to the previous year.
This trade data was released just one day after US President Donald Trump sent an official letter to Japan, notifying them that a 25% tariff on Japanese goods would come into effect on August 1. Trump expressed that he did not anticipate a trade agreement with Japan, despite Tokyo’s “extensive efforts” to negotiate a deal.
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