Tokyo (AP) – Exports from the US to Japan, its largest single trading partner, saw a decline of nearly 2% in April as the tariffs implemented by President Donald Trump took effect.
On a global scale, exports increased by 2% year-on-year, down from 4% in March. Trade deficit has emerged for the first time in three months.
In April, imports from the US decreased by over 11%, while overall imports dipped by 2.2%.
A decline in exports could hinder growth, following a 0.7% contraction in the previous quarter.
Japan is appealing to the Trump administration, which has yet to agree to any actions aimed at lifting tariffs on Japanese imports.
The Ministry of Finance reported that April’s trade deficit reached a total of 115.8 billion yen ($84 million), compared to a deficit of 54.7 billion yen the previous year.
Recently, the Japanese yen has struggled against the US dollar, diminishing the value of its exports; the dollar is currently trading at around 144 yen, down from approximately 155 yen a year ago.
Earlier this year, exports surged as businesses rushed to circumvent the progressively enforced tariffs since Trump’s second term began.
While trade with the US faces challenges, exports to other regions, like Southeast Asia, are on the rise.
The US imposes 25% tariffs on auto imports, which are crucial to Japan’s trade with the US and play a significant role in economic growth. Although Trump has relaxed some tariffs, higher tariffs on steel and aluminum remain in place.
In April, Japan’s vehicle exports plummeted nearly 6% compared to the previous year.
Japan’s chief tariff negotiator, Minister of Economic Revitalization, is expected to visit the US for talks, possibly over the weekend, as part of their third round of discussions.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
Source: apnews.com