Japan exports to the US plunge 14 pc as tariffs bite
TOKYO: Japanese exports to the US plunged nearly 14% in August as Donald Trump's swingeing tariffs continued to bite, with Wednesday's official data also showing auto shipments were down more than a quarter.
The figures marked the latest hefty fall since the US president unveiled his levies against most other countries that rattled markets and shook up global trade.
The 13.8% year-on-year drop in the value of goods going to the United States was the heaviest in more than four years, according to Bloomberg.
Auto exports tanked 28.4%, while auto parts fell 7.1%, Japan's finance ministry data showed. Shipments of cars and other vehicles have seen similar falls since Trump began his trade war earlier in the year.
The auto industry, which accounts for about a third of Japan's exports to the United States, has been suffering under a 27.5% levy.
However, on Tuesday, lower US tariffs on Japanese autos kicked in as Washington implemented a recent trade pact between the two countries.
Vehicles will now face a 15% toll, the same as many other goods.
While the implementation of the trade deal marked a win for Japan, the levies will continue to cause huge pain for the nation's industries, and Japanese business lobbies are hoping Tokyo will push on with fresh negotiations.
Trump has imposed painful import tariffs on countries around the world in an attempt to boost US manufacturing and reduce the colossal US trade deficit.
Japan's automobile industry, which includes giants like Toyota and Honda, accounts for around 8% of the country's jobs.
Japan's trade surplus with Washington -- which has been strongly criticised by Trump - fell about 50% on-year in August, to 324 billion yen ($2.21 billion).
By RSS/AFP
