Japan’s export sector demonstrated resilience in September, with a 4.2% year-on-year increase, according to data released by the Ministry of Finance on Wednesday. This growth was primarily fueled by a 9.2% surge in exports to Asian markets, which helped counterbalance a significant 13.3% decline in shipments to the United States. The drop in U.S.-bound exports, marking the sixth consecutive month of decline, was largely attributed to tariffs imposed by former President Donald Trump. Notably, auto exports to the U.S. plummeted by 24.2%, a concerning trend for Japanese automakers like Toyota Motor Corp., which play a pivotal role in the nation’s economy. Meanwhile, exports to China rose by 5.8%, highlighting the growing importance of Asian trade partnerships. On the import side, Japan saw a modest 3.3% overall increase, with imports from Asia climbing 6%, including a 9.8% rise from China. The trade data coincides with the historic appointment of Sanae Takaichi as Japan’s first female prime minister. Takaichi, known for her nationalist and conservative views, has pledged to boost public spending, increase wages, and implement looser monetary policies, which could weaken the yen and benefit exporters. However, her policy agenda faces significant hurdles, as the ruling Liberal Democratic Party lacks a majority in parliament and remains internally divided. Trump’s upcoming visit to Japan later this month is expected to address the trade framework established in July, which imposed a 15% tariff on Japanese goods—a reduction from the initially proposed 25% rate. Japan had previously committed to investing $550 billion in the U.S. and opening its markets to American automobiles and rice.
