Japan’s exports to the United States fell by nearly 2% in April. The U.S. is Japan’s biggest trading partner, so this drop is a big concern. The fall in exports is mainly due to higher tariffs (import taxes) set by U.S. President Donald Trump.
Overall, Japan’s exports to all countries grew only 2% in April compared to last year. This is slower than the 4% growth seen in March. As a result, Japan had a trade deficit in April for the first time in three months. A trade deficit means Japan bought more from other countries than it sold. In total, imports fell by 2.2%, and imports from the U.S. dropped sharply by more than 11%.
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This drop in exports could hurt Japan’s economy, which already shrank by 0.7% in the last quarter. Japan has asked the U.S. to remove the tariffs on Japanese goods, but the U.S. has not agreed yet.
In April, Japan’s trade deficit was 115.8 billion yen (around $804 million). This is better than last year’s deficit of 504.7 billion yen. However, the Japanese yen has become stronger compared to the U.S. dollar — now about 144 yen per dollar, down from 155 yen a year ago. A stronger yen makes Japanese exports more expensive for other countries, which can reduce sales.
Earlier this year, exports had increased because many companies rushed to ship goods before the new tariffs started. While exports to the U.S. have dropped, exports to other places like Southeast Asia have gone up.
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A major problem is the U.S. tariff of 25% on imported cars — one of Japan’s biggest exports to the U.S. Car exports fell nearly 6% in April compared to last year. While some tariffs on other goods have been relaxed, the U.S. still has high tariffs on steel and aluminum.
Japan’s Economic Revitalization Minister, Ryosei Akazawa, who leads tariff discussions, is expected to visit the U.S. soon for another round of talks.
