🚨🇯🇵JAPAN’S MAY #EXPORTS FALL FOR FIRST TIME IN 8 MONTHS, HIT BY 🇺🇸U.S. AUTO TARIFFS
🔹Exports fell 1.7% YoY in May (vs. -3.8% forecast), led by 11.1% drop to U.S.
🔹U.S. tariffs slashed auto export value (-24.7%) despite minor volume dip (-3.9%)
🔹Japan’s trade deficit: ¥637.6B; imports fell 7.7%
🔹Tariff dispute unresolved post-G7; 25% U.S. auto tariffs + potential 24% reciprocal rate loom
🔹Auto sector = 28% of Japan’s U.S. exports
🔹Major automakers absorbing costs to avoid U.S. price hikes
🔹BoJ holds rates steady; weak economy complicates policy
🔹Total GDP may fall 1% if full tariffs imposed
-Reuters