Photo credit: www.cnbc.com
A flag of Japan flies near cargo containers at Tokyo’s Odaiba Waterfront on August 6, 2020.
On Thursday, Japan disclosed a 3.9% growth in exports for March compared to the same month last year, following an exceptional growth period that saw the largest increase since May 2024.
This growth was below the 4.5% increase anticipated by economists surveyed by Reuters, and significantly lower than the remarkable 11.4% rise recorded in February.
Exports to the United States, which ranks as Japan’s second-largest trading partner, experienced a modest increase of 3.1%.
It’s noteworthy that the March export figures do not fully reflect the ramifications of U.S. President Donald Trump’s tariffs. The U.S. had established a 25% tariff on auto imports effective April 3, with additional tariffs of 25% on steel and aluminum taking effect on March 12.
In a related development, Trump has deferred the implementation of his proposed 24% “reciprocal” tariffs on Japan for a 90-day period, maintaining a baseline tariff of 10%.
This export data arrives amid ongoing trade discussions between Japan and the United States. Trump indicated in a post on Truth Social that there has been “big progress” in negotiations. Previously, he had stated his intention to attend a forthcoming trade meeting, emphasizing that discussions would encompass “tariffs, the cost of military support, and ‘TRADE FAIRNESS.'”
As of 2024, Japan was listed as the sixth largest exporter of steel to the U.S., and its automobile brands dominated the market, featuring four out of the top eight best-selling brands, with Toyota leading the pack.
Automobiles represent Japan’s primary export to the United States, comprising 28.3% of total shipments in 2024, as per customs data.
In terms of imports, Japan saw a rise of 2%, falling short of the anticipated 3.1% increase indicated by the Reuters poll.
The trade deficit for Japan diminished to 544.1 billion yen, though it was higher than the predicted deficit of 485.3 billion yen according to the Reuters survey. In February, the deficit had been recorded at 590.5 billion yen.
Source
www.cnbc.com