Japan’s exports fell for the first time in eight months in May, data showed on Wednesday (Jun 18), indicating that sweeping US tariffs were threatening the country’s fragile economic recovery, Reuters reported.
Japanese Prime Minister Shigeru Ishiba and US President Donald Trump have yet to reach a trade deal.
Tokyo is scrambling to find ways to get Washington to exempt its automakers from 25 per cent automobile industry-specific tariffs, which are dealing a heavy blow to the country’s manufacturing sector. It also faces a 24 per cent ‘reciprocal’ tariff rate starting in Jul 9 unless it can negotiate a deal with Washington.
Total exports by value dropped 1.7 per cent year on year in May, data showed, smaller than a median market forecast for a 3.8 per cent decrease and following a 2 per cent rise in April.
Exports to the United States plunged 11.1 per cent last month from a year earlier, while those to China were down 8.8 per cent, the data showed, according to Reuters.
The tariff threat had driven companies in Japan and other major Asian exporters to ramp up shipments earlier this year, inflating levels of US-bound exports during that period.
