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yesterday

Japan’s Export Growth Slows to Six-Month Low as U.S. Tariffs Take Toll

April trade data reveals a 2% export rise but a 1.8% drop in U.S.-bound shipments, pushing Japan into a trade deficit amid escalating tariff pressures.

Workers load a container on a cargo ship at an industrial port in Tokyo, Japan April 3, 2025. REUTERS/Kim Kyung-Hoon
FILE - Tokyo Container Terminal is seen in Tokyo on Feb. 19, 2025. (AP Photo/Eugene Hoshiko, File)
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Overview

  • Japanese exports increased by 2% in April 2025, marking the slowest growth since October 2024, as shipments to the U.S. fell by 1.8%.
  • Automobile exports to the U.S. dropped 4.8% due to a stronger yen and declining demand for high-end models, although overall auto export volumes rose by 11.8%.
  • The U.S. imposed 25% tariffs on Japanese cars, steel, and aluminum in April, alongside a 10% baseline tariff, with additional 24% reciprocal duties temporarily suspended.
  • Japan recorded a trade deficit of 115.8 billion yen in April, defying expectations of a surplus, as imports fell less than analysts predicted.
  • The economic impact of tariffs and slowing export growth contributed to a 0.7% annualized GDP contraction in Q1 2025, raising concerns over Japan’s recovery prospects.