Korean Media: Japan's Exports Fall 0.5% in June, Exports to the US Drop 11.4%!

On August 22, Korean media "Global Economy" published an article stating that due to President Trump's high tariff policy, Japan's exports continued to decline for the second consecutive month in June. The continuous decline in exports to its largest export destination, the United States, has cast a shadow over Japan's export-dependent economy.

Data released by the Japanese Ministry of Finance recently showed that overall exports in June fell by 0.5%, lower than the 0.5% growth predicted by Reuters' survey of economists. Especially exports to the US, after falling 11.1% in May, fell again by a significant 11.4%.

Since April 5, the United States has imposed a basic tariff of 10% on Japan. President Trump announced additional tariffs of 25% on Japanese goods, which took effect on August 1. This figure is slightly higher than the initially announced 24% "reciprocal" tariff in April. The US has separately imposed a 25% tariff on all imported cars, raising the total rate to 27.5%.

The car tariff has hit Japan particularly hard, as Japan accounts for 13% of US car and auto parts imports in 2024, worth $50 billion. In June, exports of cars and auto parts to the US dropped sharply by 26.7% and 15.5%, respectively. Steel exports, which were subject to an additional 50% tariff, also fell by 28.5%.

Japan is the most important ally of the United States in Asia, but it has made little progress in persuading Washington to reduce tariffs.

Japan's export performance has also been affected by its second-largest export destination, China. Exports to China fell by 4.7%, continuing for the fourth consecutive month. In contrast, exports to the EU and Southeast Asia increased by 3.6% and 4.9%, respectively, showing signs of recovery in some areas.

Imports increased by 0.2% year-on-year in June. Japan achieved a trade surplus of 15.3 billion yen in the month. Overall, exports grew by 3.6% and imports by 1.3% in the first half of 2025.

Continuing tariff uncertainty still casts a shadow over Japan's export prospects. Notably, as trade negotiations with the US are postponed, concerns among Japanese companies are increasing.

Original: www.toutiao.com/article/1841154891983884/

Statement: This article represents the views of the author.