According to the latest statistics released by the Japanese government, the total amount of exports in August once again declined, but the rate of decline is narrowing.
The data released by the Japanese Ministry of Finance on Wednesday (September 17) showed that the export amount in August decreased by 0.1% year-on-year, a significant improvement from the 2.6% decline in July.
Overall, Japan experienced a trade deficit in August, with a deficit of 242.5 billion yen (1.7 billion US dollars). The import amount decreased by 5.2% year-on-year, lower than the 7.4% decline in July but still higher than the market expectation of 4.1%.
Amid the recent continued downturn in Japanese exports, global companies are digesting the impact of US trade policies.
As the world’s fourth-largest economy, Japan’s export decline is mainly attributed to the US tariff adjustments.
In August, Japan’s exports to the US fell by 13.8% year-on-year, higher than the 10.1% decline in July; meanwhile, imports from the US to Japan increased by 11.6%.
Automobiles and components account for about one-third of Japan’s total exports to the US. In 2024, cars were Japan’s largest export item to the US.
The decline in Japan’s automobile exports to the US is particularly significant. In August, Japan’s exports of automobiles to the US decreased by 28.3% year-on-year, a slight improvement from the 28.4% decline in July.
However, the US has reduced the import tariff on Japanese cars from 27.5% to 15%, which took effect on September 16. The impact of this move on Japan’s future exports to the US is being closely watched.
Meanwhile, Japan’s exports to China decreased slightly by 0.5% in August, while exports to Europe increased by 5.5%.
Following the release of the latest statistics, Japan’s Nikkei 225 index fell by 0.12% on Wednesday.