Vehicles awaiting shipping are parked in a port on March 27, 2025 in Yokohama, Japan. WE
Tomohiro Ohsumi | Getty images
Japan exports that growth has slowed down for a second consecutive month, government data showed on Wednesday, while the country is revealed under the prices of US President Donald Trump.
Exports to the United States, the second largest trading partner in Japan, have dropped for the first time since December of last year, lowering 1.8% compared to a year ago. The country’s exports to the United States increased by 3.1% in March.
Japan’s trade surplus with the United States has narrowed to 780.6 billion yen ($ 5.4 billion) in April, compared to 846.9 billion yen in March, according to official figures.
Overall, export growth of 2% was in accordance with the estimates of Reuters Pollerie analysts, but it has been the slowest since October of last year and the worst performance since September, when shipments have dropped 1.7%.
The country’s imports decreased by 2.2% compared to a year ago, less than estimates of a 4.5% drop.
Exports of transport equipment by Japan, including motor vehicles and parts, to the United States, dropped by 4.1% per value compared to the previous year. Automobiles are the main export from Japan to the United States, representing 28.3% of all shipments in 2024, according to customs data.
Japan is invoiced a 25% levy from its automobile, steel and aluminum exports to the United States, the ally of the United States is also subject to the 10% reference rates imposed by Trump to most business partners. Japanese products are also faced with 24% “reciprocal” prices that have been temporarily suspended.
Trump, on April 2, took “reciprocal” prices from more than 180 countries, including Japan, to suspend them about a week later for 90 days after market disorders, and allowing trade partners to conclude agreements with Washington during this period.
“Net exports will remain an obstacle to GDP growth in the second quarter,” said Abhijit Surya, the main economist of APAC with Economics Capital in a note, providing that the Central Bank pushes its next interest rate up until October when there is a greater certainty on American prices.
The gross domestic product in Japan contracted one year annualized by 0.7% in the first quarter this year, showed that the government’s preliminary data has shown, driven by stagnant private consumption and the slowdown in export growth.
“Japanese manufacturers are in difficult times,” said Stefan Agrick, head of Japan and border markets in the economy at Moody’s Analytics, noting that “Talte” trade policy is likely to create a coup de fouethol that went on the economy, injuring growth.
Even if Japan concludes an agreement with the United States, “a complete return under pre-Trump terms is not on the table,” said Agrick.
While Japan was the first to start bilateral commercial talks with the United States, its negotiation seems to have blocked. On Tuesday, Ryosei Akazawa in Japan, Ryosei Akazawa would have reiterated the country’s demand for the United States to raise the prices on Tokyo.
Japan will not rush to seal a trade agreement if it puts the interests of the country in danger, he said.
