US EditionJapan’s Exports Fall as US Tariffs Stoke Recession Risks
- In May 2025, Japan experienced its first drop in exports in eight months with a 1.7% year-on-year decline, leading to a two-month streak of trade shortfalls, including a gap valued at approximately $4.4 billion .
- This export drop largely resulted from increased U.S. tariffs, including 25% on cars and parts and a doubled 50% levy on steel and aluminum implemented in June.
- Exports to China fell 8.8%, shipments to the U.S. dropped 11.1% with car exports declining 24.7%, while exports to Europe rose 4.9%, and the yen strengthened 7.4% against the dollar.
- After two months of negotiations, Japan’s Prime Minister Shigeru Ishiba was unable to obtain a delay in tariffs at the June G7 summit, and the current 10% tariff suspension is scheduled to end on July 9, restoring the rate to 24%.
- Authorities have introduced urgent measures to assist households and companies in managing the effects of increased tariffs amid concerns about a deeper economic downturn and possible recession.
12 Articles
12 Articles
U.S. Tariffs Push Japan’s Economy Toward Recession as Exports Falter
Japan’s economy is feeling the pressure as new U.S. tariffs make it harder for Japanese companies to sell their products abroad. According to official data from the Ministry of Finance, Japan’s exports dropped by 1.7% in May compared to last year. This is the first time in eight months that exports have fallen, and it […]
Tariffs complicate exports, Tokyo has not yet reached an agreement with Washington
Japan’s Exports Drop 1.7% Amid Tariff Tensions With US
Japan’s Finance Ministry reported on Wednesday that the country’s exports measured by value shrank 1.7% in May, compared to last year, led by cars, steel and mineral fuel. Japan reported a drop in exports for the first time in eight months, triggered by US protectionist policies. Since his re-election, the world has been preparing for a recessionary period, as Donald Trump’s first order of business was to impose tariffs on nearly all countries,…
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