Japan’s Ministry of Finance reported that in July, the country’s exports fell at the fastest rate in four years due to U.S. tariffs. According to official data, total exports declined by 2.6 percent compared to the previous year.
Exports to the U.S. were particularly affected, dropping 10.1 percent. Among these, motor vehicle exports fell by 28.4 percent, while auto parts exports decreased by 17.4 percent.
U.S. President Donald Trump had imposed a 10 percent general tariff on Japanese goods and a 27.5 percent tariff on cars to boost domestic production and reduce the trade deficit. Although Japan recently secured an opportunity to reduce mutual tariffs to 15 percent through a trade agreement, tariffs on Japanese automobiles remain in effect.
The automotive sector is under significant pressure, as it accounts for roughly 8 percent of employment. Nevertheless, Japan’s economy achieved an annual growth rate of 1.0 percent in the second quarter, surpassing expectations.
Source: Reuters.