Japan's Export Struggle Amid U.S. Tariff Tensions

Japan's exports to the United States declined by 13.8% in August, marking the fifth consecutive month of decreases as American tariffs on Japanese auto products took a toll on trade. This decline is an increase from July's 10.1% drop, as reported by the Finance Ministry on Wednesday.

The U.S. had initially levied a 27.5% tariff on Japanese automobiles and parts under the Trump administration, which was reduced to 15% recently, though it remains significantly higher than the pre-tariff rate of 2.5%. The data reflects export conditions during August, when tariffs were at 27.5%.

Despite these challenges, Japan's overall exports remained relatively stable, noting a modest 0.1% decline. Exports to Europe and the Middle East increased, while imports worldwide fell by 5.2%. Notably, exports in food and ships exhibited substantial growth, counterbalancing diminished auto exports.

(With inputs from agencies.)