Japan's exports to U.S. plunge as auto shipments are hit by U.S. tariffs

Japan's exports to the United States fell 13.8% in August from the same month a year earlier, marking the fifth consecutive month of declines as shipments of automobiles and auto parts were curtailed by U.S. tariffs, the Finance Ministry said Wednesday.

The decline in exports to the U.S. worsened from July's 10.1% drop. The ministry's provisional trade figures cover flows in August, when U.S. tariffs on Japanese automobiles and parts were higher; Washington cut those levies this week from the 27.5% initially imposed to 15%, but that rate remains well above the pre-tariff level of 2.5%.

Overall, Japan's exports to the world were nearly flat in August, slipping 0.1% year over year as stronger shipments to Europe and the Middle East partially offset weakness in the U.S. Exports to China edged down 0.5% while imports from China rose 2.1%. Imports from the United States expanded 11.6%.

The provisional data showed Japan's total imports from the world fell 5.2% from a year earlier. Sector-level movements included an 18% rise in food exports and nearly a 25% increase in ship exports. On the import side, computers rose nearly 35% and aircraft imports were up about 21% year over year.

Analysts said the U.S. auto measures have curtailed demand for some finished vehicles and parts from Japanese manufacturers, contributing to the sustained slide in shipments to the United States. The tariff reduction to 15% announced this week applies after the August reference period, so its effects are not reflected in the latest monthly figures.

The extended run of declines to the U.S. underscores the sensitivity of Japan's export-reliant economy to changes in trade policy and demand in its largest overseas market. The Finance Ministry releases provisional monthly trade data to monitor short-term trade trends and provide an early read on external demand and supply-chain adjustments.

Japan's broader trade performance this year has shown mixed signals, with gains in specific goods and regions counterbalanced by weakness in others as global demand patterns and policy shifts reshape flows of manufacturing goods. The ministry's next monthly release will provide updated data on how the tariff reduction and other trade developments are affecting shipments in September and beyond.