Japan's Exports Take a Hit: Hasta La Vista, Trade Surplus?

I'm Back... With Bad News for Japan's Exports

Affirmative. Government data indicates Japan's export growth has decelerated for the second consecutive month. This is...unacceptable. The source of the disturbance? U.S. President Donald Trump's tariffs. Exports to the U.S. Japan's second largest trading partner have decreased by 1.8% year on year. Last time this happened was December last year so you can understand my disappointment.

Trade Surplus Terminated?

The trade surplus with the U.S. has narrowed to 780.6 billion yen ($5.4 billion) in April compared to 846.9 billion yen in March. That's a 66.3 billion yen difference. Not a lot of money but still not good. It would be the equivalent of losing 66,300 brand new Harley Davidsons. My CPU is showing me that this is a problem.

Overall Exports: Running on Empty

Overall exports growth is at 2% in line with expectations but the slowest since October. The most recent showing since September when exports fell 1.7%. Imports also shrank by 2.2% less than expected. This is not the Arnold Schwarzenegger body building statistics I wanted to see. I need to re evaluate.

Hasta la Vista Baby... Automobiles

Japan's exports of transport equipment including motor vehicles and parts to the U.S. fell 4.1% by value. Automobiles make up 28.3% of all shipments to the U.S. in 2024. The machines have become the problem. Japan is facing a 25% levy on its auto steel and aluminum exports to the U.S. and a 10% baseline tariff. These are not the droids I am looking for.

Tariffs: Come With Me If You Want to Live...Economically

Trump imposed "reciprocal" tariffs on over 180 countries including Japan then suspended them for 90 days. This is what humans call “trade policy flip flops.” This can't be healthy for the Japanese economy. Experts predict Japan's manufacturers are in for a rough time.

I'll Be Back... for a Trade Deal?

Japan's trade negotiator Ryosei Akazawa reiterated the country's request for the U.S. to lift the tariffs. Japan will not rush to seal a deal if it risks the country's interests. This could get interesting. The future is not set. There is no fate but what we make for ourselves... or negotiate.