Japan’s exports to the world rise but drop to the US due to tariffs

Japan’s trade landscape in October revealed a nuanced picture, with global exports rising by 3.7% year-on-year, while imports saw a modest 0.6% increase, according to the latest government data. However, exports to the United States declined by 3.1%, marking the seventh consecutive month of year-on-year drops. This downturn is attributed to ongoing concerns over U.S. tariffs, which have reshaped trade dynamics between the two nations. In July, President Donald Trump introduced a trade framework imposing a 15% tariff on Japanese goods, a reduction from the initially proposed 25%. Previously, tariffs on most goods stood at 2.5%. Despite these challenges, Japan’s trade deficit narrowed significantly to 231.77 billion yen ($1.5 billion) in October, down from 499.95 billion yen ($3.2 billion) a year earlier. Notably, soybean imports surged by 37.3%, while iron and steel products dipped by 17.1%. Imports from the U.S. jumped 20.9%, driven by food items like cereals and petroleum. Meanwhile, Japan’s exports to Asia showed resilience, with a 2.1% increase to China, a 19.2% surge to Hong Kong, and a 17.7% rise to Taiwan. However, new tensions with China emerged after Prime Minister Sanae Takaichi’s comments on Taiwan, prompting Beijing to issue a travel advisory against Japan. Analysts suggest Japan may increasingly pivot towards other Asian markets to sustain economic growth, reducing its reliance on U.S. exports.