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6 days ago
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Japan exports down for second straight month, weighed by US tariffs
By Makiko Yamazaki TOKYO (Reuters) - Japan's exports fell for a second straight month in June, data showed on Thursday, underscoring the mounting strain that sweeping U.S. tariffs are placing on the country's fragile economy. Japan failed to clinch a deal with the U.S. before the July 9 expiration of the temporary pause on the country-specific tariffs after it focused on eliminating the existing sectoral 25% tariffs on automobiles, a mainstay of the export-reliant economy. Washington now plans to impose tariffs of 25% on Japanese imports, unless a trade deal is struck by August 1. Total exports by value dropped 0.5% year-on-year in June, data showed, compared with a median market forecast for a 0.5% increase and a 1.7% decrease in May, the first drop in eight months. Exports to the United States fell 11.4% in June from a year earlier, while those to China were down 4.7%, the data showed. Total imports grew 0.2% in June from a year earlier, compared with market forecasts for a 1.6% drop. As a result, the trade balance stood at a surplus of 153.1 billion yen ($1.03 billion), compared with a forecast for a surplus of 353.9 billion yen. U.S. tariffs are adding to pressure on the Japanese economy which is struggling due to lacklustre domestic consumption. Japan's economy shrank in the first quarter as rising living costs hurt demand. So far, Japanese automakers have avoided major price hikes in the U.S. by cutting prices on exported cars and absorbing tariff costs to stay competitive while sacrificing profits. Japan exported 21 trillion yen worth of goods to the United States last year, with automobiles representing roughly 28% of the total. Prolonged uncertainties over the impact of the tariffs and the course of trade negotiations will likely force the Bank of Japan to keep focusing on downside risks to the economy and to put rate hikes on hold for the time being, analysts say. ($1 = 148.0000 yen) ($1 = 148.0600 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
Japan exports post first drop in 8 months as US tariffs hit autos
By Makiko Yamazaki TOKYO (Reuters) -Japan's exports fell for the first time in eight months in May, data showed on Wednesday, indicating that sweeping U.S. tariffs were threatening the country's fragile economic recovery. Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump have yet to reach a trade deal. Tokyo is scrambling to find ways to get Washington to exempt its automakers from 25% automobile industry-specific tariffs, which are dealing a heavy blow to the country's manufacturing sector. It also faces a 24% 'reciprocal' tariff rate starting in July 9 unless it can negotiate a deal with Washington. Total exports by value dropped 1.7% year-on-year in May, data showed, smaller than a median market forecast for a 3.8% decrease and following a 2% rise in April. Exports to the United States plunged 11.1% last month from a year earlier, while those to China were down 8.8%, the data showed. The tariff threat had driven companies in Japan and other major Asian exporters to ramp up shipments earlier this year, inflating levels of U.S.-bound exports during that period. The data showed imports dropped 7.7% in May from a year earlier, compared with market forecasts for a 6.7% decrease. As a result, Japan ran a trade deficit of 637.6 billion yen ($4.39 billion) last month, compared with the forecast of a deficit of 892.9 billion yen. The hit from U.S. tariffs could derail Japan's lacklustre economic recovery. Subdued private consumption already caused the world's fourth-largest economy to shrink in January-March, the first contraction in a year. They also complicate the Bank of Japan's task of raising still-low interest rates and reducing a balance sheet that has ballooned to roughly the size of Japan's economy. The BOJ kept interest rates steady on Tuesday and decided to decelerate the pace of its balance sheet drawdown next year, signalling its preference to move cautiously in removing remnants of its massive, decade-long stimulus. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were to take effect, U.S.-bound exports will fall by 20-30%. Some economists say those duties could shave around 1 percentage points of the nation's gross domestic product. Japan exported 21 trillion yen worth of goods to the United States last year, with automobiles representing roughly 28% of the total. . ($1 = 145.3400 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
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Japan's US Treasury holdings not a topic in Bessent meetings, minister says
By Makiko Yamazaki TOKYO (Reuters) -Japanese Finance Minister Katsunobu Kato said on Friday he had not specifically discussed Japan's $1 trillion-plus holdings of U.S. Treasury securities during past meetings with U.S. Treasury Secretary Scott Bessent. Kato, at a regular news conference, addressed media reports saying that Japanese Prime Minister Shigeru Ishiba told opposition leaders on Thursday that Tokyo's U.S. bond holdings came up during the two countries' ongoing tariff negotiations. "My understanding is that the topic of Japan's Treasury holdings has been left with me and Treasury Secretary Bessent," he said. "I will refrain from commenting on what we have discussed, but we have not had any specific exchanges on the handling of Tokyo's Treasury holdings." Kato caused a stir last month when he said Japan could use its holdings of U.S. Treasuries as a card in trade talks with Washington. He later clarified that Tokyo had no intention of threatening to sell U.S. Treasuries. On Friday, Kato reiterated that the primary purpose of Japan's U.S. Treasury holdings - the largest in the world - is to ensure it has sufficient liquidity to conduct foreign exchange transactions when necessary to stabilise its currency. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
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Japan says no easy concession on US tariffs, seeks another round in June
By Makiko Yamazaki and Nathan Layne (Reuters) -Japan and the U.S. on Friday agreed to hold another round of trade talks ahead of the G7 summit next month, Japan's top tariff negotiator said, stressing that no deal would be without concessions on all Washington's tariffs, including on autos. Japan's Economy Minister Ryosei Akazawa met with U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick in Washington for 130 minutes in a fourth round of the trade negotiations. "We agreed to accelerate the talks and hold another round ahead of the G7 summit in June, where the leaders from Japan and the United States are set to meet," Akazawa told Japanese media gathered at the Japanese embassy in Washington. Japan faces a 24% tariff rate starting in July unless it can negotiate a deal with the U.S. It is also scrambling to find ways to get Washington to exempt its automakers from 25% tariffs on automobiles, Japan's biggest industry. Akazawa said Japan's position has not changed that the tariffs are not acceptable and he is "strongly urging" the U.S. to immediately reconsider and drop all the tariffs, including those levied on automobiles, auto parts, aluminum and steel. "If our requests to do that are met, we may be able to come to an agreement," Akazawa told Japanese media gathered at the Japanese embassy in Washington. "But if that is not possible, then it will be difficult for us to agree to a deal." Japanese government sources said before the latest meeting that an immediate deal was unlikely, as they would never hastily seal a deal that would not benefit Japan, particularly the automobile sector. Akazawa declined to give details of the latest discussions, but said trade expansion, non-tariff barriers and cooperation in economic security have been on the agenda at every meeting. Semiconductor supply chains and rare earths are among economic security topics, he added. He also said, while he was closely monitoring Nippon Steel's possible deal for U.S. Steel, he could not yet comment on it due to a lack of any official announcement from the U.S. government.
Yahoo
21-05-2025
- Business
- Yahoo
US, Japan finance chiefs say current dollar-yen reflects fundamentals
By Makiko Yamazaki BANFF, Alberta (Reuters) -U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato agreed on Wednesday that the dollar-yen exchange rate currently reflects fundamentals, the U.S. Treasury Department said. "They reaffirmed their shared belief that exchange rates should be market determined and that, at present, the dollar-yen exchange rate reflects fundamentals," the department said in a statement. Bessent and Kato met on the sidelines of the Group of Seven finance ministers gathering in Banff, Canada. They discussed trade and currency issues, but as in their previous meeting in April, they did not discuss foreign exchange levels, according to the department. Japan and the United States have agreed to keep the thorny issue of currency rates separate from direct trade negotiations, setting it aside for talks between their finance ministers. President Donald Trump's focus on addressing the huge U.S. trade deficit and his past remarks accusing Japan of intentionally maintaining a weak yen have led to market expectations that Tokyo will face pressure to strengthen the yen's value against the dollar to give U.S. manufacturers a competitive advantage. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
