NextFin news, Tokyo — Japan's exports to the United States plummeted 13.8% in August compared to the same month last year, marking the fifth straight month of declines, as tariffs on Japanese automobiles and auto parts imposed by former U.S. President Donald Trump continued to impact trade, the Japanese Finance Ministry reported this Wednesday.
The data released on Wednesday showed the decline worsened from a 10.1% drop in July. The tariffs on Japanese autos and parts, initially set at 27.5%, were reduced to 15% this week but remain significantly higher than the original 2.5% tariff rate.
The August figures reflect the period when the higher tariffs were still in effect. Despite the drop in exports to the U.S., Japan's overall exports slipped only 0.1%, supported by growth in exports to Europe and the Middle East.
Additionally, Japan's imports from the world fell 5.2% year-on-year in August. Imports from China increased by 2.1%, while exports to China decreased by 0.5%. Imports from the U.S. grew by 11.6% during the same period.
The automotive sector, which accounts for about one-third of Japan's exports to the U.S., saw auto exports decline by 28.4% and auto parts by 7.1%, according to the Finance Ministry data. This sector has been particularly affected by the tariffs.
Japan's trade surplus with the U.S. also shrank by about 50% year-on-year in August, falling to 324 billion yen (approximately $2.21 billion).
Other export sectors showed growth, with food exports rising 18% and ship exports increasing nearly 25%. Imports in computers and aircraft also grew significantly, by nearly 35% and 21% respectively.
The tariffs were part of former President Trump's broader trade policy aimed at boosting U.S. manufacturing and reducing the trade deficit, which has had wide-ranging effects on global trade, including Japan's export economy.
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