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Japan racks up trade deficit amid threat from Trump’s tariffs

JAPAN, JUL 17 – Japan recorded a $15 billion trade deficit in the first half of 2025 as U.S. tariffs cut auto exports by 25%, pressuring negotiations before upcoming trade talks.

  • On Thursday, Japan sank into a trade deficit of 2.2 trillion yen , exports hit by President Donald Trump's tariffs.
  • Aiming to curb a $70 billion deficit, President Donald Trump threatened substantial tariffs on Japanese automotive imports.
  • Amid tariff hikes, auto exports to the U.S. tumbled more than a quarter in June, official data showed.
  • Following a 0.7 percent annualized contraction in the first quarter, Shigeru Ishiba's minority government faces Upper House elections on Sunday.
  • As August 1 approaches, 25 percent tariffs loom, but no agreement has been reached despite several rounds of talks.
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Kyodo News+ broke the news in Japan on Wednesday, July 16, 2025.
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