Shipping container loads Dock in Tokyo Bay. Japan is highly dependent on export (eg motorcycle, electronics), is confronted with risks of American rates, especially on cars (a proposed rate of 25% during Trump’s first term was postponed but remains a referral). Higher rates can lower the American market access of Japan, increase consumer prices and harm GDP growth. The strategic coordination of Japan with the US and exemptions of sub -rates (steel rates in 2018) partial offer lighting. Japan also played to diversify trade via aguements such as the CPTPP and RCEP, which reduces dependence on the American market.
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Japan exports in May fell by 1.7% years after year, which marked the sharpest decrease since Sepcess 2024 while the country continues to struggle with the uncertainties of the trading.
The fall was softer than the fall of 3.8% caused by economists who were interrogated by Reuters, but was a reversal compared to the profit of 2% remembered in April.
Data from the Japanese Handelsministerie have revised that exports to the US continued to decrease and declined 11.1% year after year. The export to China, the largest trading partner in Japan, was downloaded 8.8%.
Japan’s worldwide export in the car fell by 6.9%, but the export from motor vehicles to the US fell by 24.7% name to the same casting last year.
According to the customs data, Japanese car manufacturers were accouted for 28.3% of all exports to the US in 2024. In addition to the current 25% levy on its car, steel exports to the US, Japan is also confronted with 24% ‘mutual’ rate percentage on all other exports from 9 July.
The data that you eat until day after the Bank of Japan emphasizes in its monetary policy statement that the growth of the country would probably be “moderate” because of factors such as Trader, which led WOW to a Smawdown in overseas economies and a decrease in the profit of company companies.
“It is extremely uncertain how trade and other policy will evolve in every jurisdiction and how overseas economic activity and prices will react to them,” De Boj added.
Stefan Angrick, head of Japan and Frontier Markets Economics at Moody’s Analytics, said that is the “most important threat” for Japan’s prospects.
“The deteriorating trace-outlook is not winery for export in the coming months. Even if Japan and the US reach a deal that mitigates the sum of the more punitive American us, a complete return to the conditions for Trump-trade is unlikely,” he said.
The falling export had already made a dent in the GDP of Japan, where the economy of the country in the quarter ending on March with 0.2% shrinks, combed until the previous period, which marked the first time in a year that the economy contracted at a quarterly-on-quarter.
Imports in the third economy in the world fell by 7.7% in May, Kam the expectations of the Reuters survey of 6.7% decrease.
Japan’s trade deficit amounted to 637.6 billion yen in May, smaller than the 892.9 billion yen with a limited by the poll of Reuters.
On Wednesday, US President Donald Trump reported that the proceeds for breakthrough.
Louis Chua, stock research analyst for Asia at Julius Baer, notes that Japanese Prime Minister Shigeru Ishiba had report discussions
