Japan’s exports fall for second month as US auto shipments plunge

ISTANBUL

Japan’s exports fell 0.5% year-on-year in June, marking the second consecutive monthly decline as automobile shipments to the US continued to slump, official data from the Japanese Finance Ministry showed Thursday.

The result defied market expectations, which had forecast a 0.5% rise in exports for the month.

Meanwhile, Japan’s imports rose 0.2% in June, rebounding from a sharp 7.7% drop in May.

The foreign trade surplus of the country in June fell 30.8% from a year earlier to 153.1 billion yen ($1 billion) as automobile and other exports to the US plummeted amid tariffs.

Exports to the US, which accounted for 28.3% of Japan’s shipments in 2024, fell 11.4% compared to a year earlier – worsening from an 11% drop in May. Auto exports to the US plummeted 26.7% in June, a sharper decline than May’s 24.7% decrease.

Japan's trade surplus with the US dropped 22.9% to 669.3 billion yen ($4.5 billion), down for the second straight month as imports from the country fell 2% to 1.04 trillion yen ($7 billion), according to Kyodo News.

Exports to China, Japan’s largest trading partner, also fell 4.7% year-on-year.

The trade data came a day after US President Donald Trump sent a formal letter to Japan stating that a 25% tariff on Japanese goods would take effect Aug. 1. Trump said he does not expect a trade agreement with Japan despite Tokyo’s “extensive efforts” to reach a deal.

The US already imposed a 25% tariff in April on all automobile imports.