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Shipping container loads dock at tokyo bay. Japan is Heavoy connecting on exports (EG, Automobiles, Electronics), Faces Risks from Us Tariffs, Especially on Cars (A proposed 25% Tariff During Trump’s First Term was Deferred But Remains a concern). HIGHER TARIFS COULD REDUCE JAPAN’s US Market Access, Increase Consumer Prices, and HURT GDP Growth. However, Japan’s Strategic Alignment with the Us and Exemptions from some Tariffs (Steel Tariffs in 2018) offered partial relief. Japan has also pivoted to diversify trade via agreements like the cptpp and rcep, reducing dependance on the us market.
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Exports from Japan in May Declined 1.7% Year-on-Year, Marking the Sharpest Decline since September 2024 as the country continues to grapple with trade uncertainties.
The Fall Was Softer Than The 3.8% Decline Forecasted by Economists Polled by Reuters, But was a Reversal Compared to the 2% Gain Recorded in April.
Data from Japan’s Trade Ministry Revealed that exports to the US continued to decline, Falling 11.1% Year on Year. Exports to China, Japan’s Large Trading Partner, was down 8.8%.
The Data Comes a Day After the Bank of Japan Highlighted in Its Monetary Policy Stément That the country’s growth was likely to “moderate,” due to factors like trade, which would lead to a slowdown in overseas economies and a decline in domestic corporate profits.
“It is is extremely uncertain How trade and other police in each jurisdiction will Evolve and How Overseas Economic Activity and Prices Will React to them,” The Boj Added.
FELLING EXPORTS HAD ALREADY MADE A DENT IN JAPAN’s GDP, With the Country’s Economy Shrinking 0.2% In the Quarter Ending MarchCompared to the preceding period, Marking the First Time in a Year That the Economy Contracted on Quarter-On-Quarter Basis.
Imports to the World’s Third Large Economy Fell 7.7% in May, Compared to the Reuters Poll Expectations of A 6.7% decline.
Japan’s Trade Deficit Stood at 637.6 Billion Yen in May, Smaller than the 892.9 Billion Yen Deficit Expected by the Reuters Poll.
On Wednesday, Us President Donald Trump reportedly Said that Japan was being “tough” in trade talksAfter Six Rounds of Negotiations Between Japan’s Top Negotiator Ryosei Akazawa, Us Commerce Secretary Howard Larnick and Treasury Secretary Scott Bessent Failed to yield a Breakthrough.
Japan Currently Faces A 10% Baseline Tariff On Exports To The Us, But that that is a could shot up to 24% under Trump’s Currently suspended “Reciprocal Tariffs” If the Country Does Not Reach a Deal by the Time the Deadline Expire on July 9.
This is Breaking News, Please Check Back for Updates.
