Japan Reports May Export Decline Amid Rising U.S. Auto Tariffs

Tokyo: Japan’s exports fell in May, impacted significantly by a nearly 25% drop in automobile shipments to the United States due to increased tariffs imposed by the Trump administration.

According to the Finance Ministry’s latest report, Japan’s overall exports decreased by 1.7% year-on-year in May, a smaller decline than many analysts had anticipated. Meanwhile, imports plunged 7.7%, reflecting weakening domestic demand and a sharper drop than April’s 2% fall.

The country’s trade deficit for May widened to 637.6 billion yen (approximately $4.4 billion).

Prime Minister Shigeru Ishiba recently met with U.S. President Donald Trump at the Group of Seven summit in Canada, where the two sides were unable to resolve disagreements over the tariffs. Trump has enforced a 25% tariff on Japanese automobiles and a 24% tariff on other goods, with indications the auto tariff could increase further.

Japan remains a key ally of the United States, with Ishiba emphasizing the strength of their bilateral defense alliance while advocating for Japan’s national interests. The auto sector is a cornerstone of Japan’s economy, exporting over one million vehicles annually to the U.S. Automakers such as Toyota and Honda have highlighted their significant manufacturing presence in North America, contributing to local economies and jobs.

As trade tensions persist, the outlook for Japan’s exports, especially in the automotive sector, remains uncertain.

By RSS/AP News