Japan Exports Fall for First Time in 8 Months

Japan's exports fell 1.7% yoy to a four-month low of JPY 8,134.99 billion in May 2025, reversing a 2.0% gain in April and marking the first decline since last September amid the impact of sweeping U.S.

tariffs.

Still, the drop was milder than the market consensus of a 3.8% fall.

Shipments to the U.S.

slumped 11.1%, the second straight monthly drop, due to weaker demand for cars, auto parts, and chip-making machinery.

Meanwhile, exports to China shrank 8.8%.

In contrast, sales rose to the EU (4.9%), Russia (5.2%), and ASEAN countries (0.1%).

PM Shigeru Ishiba and U.S.

President Trump recently agreed to extend trade talks after failing to reach a breakthrough.

Tokyo continues to seek an exemption from the 25% U.S.

auto tariffs, while Trump doubled duties on steel and aluminum to 50% in early June.

A 24% reciprocal tariff is set to take effect on July 9 unless a deal is reached, posing a risk to Japan’s fragile recovery, which is already struggling due to weak private consumption.