Japan’s Exports Up 3.7% in October, But US Shipments Drop Due to Tariffs
According to government data released Friday, Japan’s global exports increased by 3.7 percent in October compared to the previous year, while imports from around the world saw a slight rise of 0.6 percent. Exports to the US decreased by 3.1 per cent, indicating the seventh consecutive month of year-on-year declines, according to data from the Finance Ministry. Concerns persist regarding the potential adverse effects of US tariffs. In July, President Donald Trump unveiled a trade framework with Japan, which includes a 15 per cent tax on goods imported from the country. That figure is below the 25 percent rate that Trump originally indicated would take effect beginning in August. Previously, tariffs on the majority of goods were set at 2.5 percent.
Soybean imports from around the globe experienced a significant increase of 37.3 per cent compared to the previous year, whereas imports of iron and steel products saw a decline of 17.1 per cent. In October, imports from the US surged by 20.9 per cent compared to the previous year, with notable increases in food imports, including cereal, alongside petroleum products. There was a decline in exports to the US in categories such as computer parts, various machinery, and vehicles including buses and trucks.
Japan’s exports to Asia, particularly China, experienced a growth of 2.1 percent last month compared to the same period last year. Exports to Hong Kong experienced a remarkable increase of 19.2 per cent, while exports to Taiwan rose by 17.7 per cent. Consequently, Japan reduced its total trade deficit to 231.77 billion Yen (USD 1.5 billion) in October, a decrease from 499.95 billion Yen (USD 3.2 billion) in the same month last year.
Recent concerns have arisen regarding trade with China following remarks made by Prime Minister Sanae Takaichi, the first female leader of the nation. Her comments about Taiwan have provoked anger in China, leading Beijing to issue a notification advising against travel to Japan. Experts indicate that Japan might focus more on exporting to other Asian countries, rather than depending significantly on exports to the US to sustain its economic growth.
