Catenaa, Wednesday, June 18, 2025- Japan exports fell in May as shipments of Motor Vehicles to the US dropped nearly 25% year-over-year due to higher tariffs imposed by President Trump.
Japanese Finance Ministry data showed on Wednesday that exports fell 1.7% year-on-year, while imports sank 7.7%, reflecting weakening domestic demand and worse than the 2% fall recorded in April.
Therefore, the trade deficit in May was 637.6 billion yen, or $4.4 billion.
Japan has yet to reach a deal with Trump on resolving the tariffs issue, with Prime Minister Shigeru Ishiba saying after he met with the U.S. president at the G-7 Summit in Canada earlier this week that the two sides were unable to agree on some points.
Trump has imposed a 25% additional tariff on Japanese motor vehicles and a 24% tariff on other goods. He recently said the auto tariff may become even higher.
Ishiba has emphasized that Japan is an important ally in a key bilateral defense alliance with Washington and that he is pushing to protect his own country’s national interests.
The auto industry is a pillar of Japan’s economy, and Japan exports more than a million vehicles to the US each year. Tokyo has repeatedly stressed that automakers like Toyota and Honda produce cars in North America, contributing to the economy and creating jobs.
