Shipping the accusative cage loading container in Tokyo Bay. Japan relies heavily on exports (for example, cars, and electronics), facing risks of American customs tariffs, especially on cars (a 25 % tariff has been postponed during the first Trump term but is still a concern). High tariffs can reduce access to American markets in Japan, increase consumer prices, and grow gross domestic product. However, Japan’s strategic compatibility with the United States and exemptions from some customs tariffs (steel definitions in 2018) provides partial comfort. Japan has also diversified trade through agreements such as CPTPP and RCEP, which reduces dependence on the American market.
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Exports from Japan in May decreased by 1.7 % on an annual basis, which represents a sharp decline since September 2024 as the country continues to deal with trade uncertainty.
The fall was softer than a 3.8 % decrease expected by Reuters economists, but it was the opposite compared to profit 2 % registered in April.
Data from the Japanese Ministry of Commerce It revealed that exports to the United States continued to decline, as it decreased by 11.1 % on an annual basis. Exports to China, the largest commercial partner in Japan, decreased by 8.8 %.
The data comes a day after highlighting the Japan bank in Monetary policy statement The country’s growth is likely to be “moderate”, due to factors such as trade, which would lead to slowdown in foreign economies and the decline in the profits of local companies.
Boj added: “It is very certain how trade and other policies will develop in every judicial state and how economic activity and prices abroad will interact with them.”
Susted exports had already achieved a dent in GDP in Japan, where the country’s economy has reduced by 0.2 % In the end of the marchCompared to the previous period, on the occasion of the first time in the year in which the economy contracted on a quarter of a quarter.
Imports fell to the third largest economy in the world by 7.7 % in May, compared to Reuters poll expectations, a 6.7 % decrease.
Japan’s commercial deficit reached 637.6 billion yen in May, smaller than 892.9 billion yen deficit expected to a Reuters poll.
On Wednesday, US President Donald Trump said that Japan was “difficult” in commercial conversationsAfter six rounds of negotiations between the best negotiators in Japan, Riozi Akazawa, US Trade Minister Howard Lootnick and Treasury Secretary Scott Payett failed to achieve a breakthrough.
Japan is currently facing a 10 % basic tariff on exports to the United States, but this number can launch up to 24 % in light of the “mutual tariff” currently suspended from Trump if the country does not reach an agreement by time when the deadline ends on July 9.
This is the urgent news, please check again for updates.
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