Japan has suffered its sharpest export decline in over four years, as new finance ministry data shows that the impact of U.S. tariffs under President Donald Trump is taking a significant toll. Exports in July dropped by 2.6 percent year-on-year, with shipments to the United States falling by over 10 percent.
The automotive sector was hardest hit, with exports of vehicles including cars, buses, and trucks plunging nearly 30 percent. Auto parts also saw a steep drop. The downturn follows the U.S. administration’s imposition of sweeping tariffs on Japanese vehicles, aimed at bolstering American manufacturing and reducing the trade deficit.
Despite the pressure on exports, Japan’s economy showed resilience, with second-quarter figures revealing a better-than-expected annualized growth rate of 1 percent. The modest expansion suggests domestic demands and other sectors may be helping cushion the blow from falling overseas sales.
