Japan’s exports slow in April as Trump’s tariffs dent shipments to US

FILE – A national flag flies near a container port in Tokyo, on Jan. 20, 2022. Japan’s trade deficit in April grew nearly 8% from a year earlier as the weak yen boosted the value of imports, offsetting gains from a jump in exports, government data showed Wednesday, May 22, 2024. (AP Photo/Eugene Hoshiko, File)

TOKYO, Japan — Japan’s exports to the United States, its largest single trading partner, fell nearly 2 percent in April as tariff hikes imposed by President Donald Trump hit home.

Globally, exports rose just 2 percent year-on-year, down from 4 percent in March, leaving a trade deficit for the first time in three months.

Imports from the United States fell more than 11 percent in April, while total imports slipped 2.2 percent.

Weakening exports could drag on growth after the economy contracted 0.7 percent in the last quarter.

Japan is asking the Trump administration to scrap his tariffs on imports from Japan, but so far, the U.S. has not agreed to do so.

READ: Japan, U.S. to hold trade talks this week

The Finance Ministry said April’s trade deficit totaled 115.8 billion yen ($804 million), compared with 504.7 billion yen a year earlier.

The Japanese yen recently has gained against the U.S. dollar, eroding the value of exports in yen terms. The dollar is trading at about 144 yen, down from about 155 yen a year ago.

READ: Japan’s exports hit record high in 2024, but trade deficit continues

Front-loading is over

Exports had picked up earlier in the year as businesses rushed to beat tariffs that have gradually taken effect since Trump took office for a second time.

While trade with the United States has suffered, exports to other regions such as Southeast Asia have expanded.

The U.S. is charging a 25-percent tariff on imports of autos, a mainstay of Japan’s trade with the U.S. and a key driver of growth for the economy. Trump has relaxed some of those tariffs but has kept in place higher tariffs on steel and aluminum.

Japan’s vehicle exports fell nearly 6 percent in April from the year before.

Economic Revitalization Minister Ryosei Akazawa, Japan’s main tariff negotiator, is due to visit the U.S. soon for talks, likely over the weekend, in the third round of those talks.