Trade tariffs bite: Japan’s exports to the U.S. shrink for the first time this year

Japan exports slowed for a second straight month, government data showed Wednesday, as the country reels under U.S. President Donald Trump’s sweeping tariffs.

Exports growth of 2% was in line with Reuters-polled analysts’ estimates, its slowest since October last year and the worst showing since September when exports contracted 1.7%.

The country’s imports shrank 2.2% from a year ago, less than estimates of a 4.5% decline.

Japan’s real gross domestic product contracted an annualized 0.7% in the first quarter this year, preliminary government data showed, dragged down by stagnant private consumption and slowing export growth.

The country is among the hardest-hit by Trump’s imposition of 25% tariffs on auto imports, effective April 3, and 25% levies on steel and aluminum that took effect in March.

Automobiles are Japan’s top export to the U.S., accounting for 28.3% of all shipments in 2024, according to customs data.

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