Source: ABC News
Date: 17th September 2025

Auto sector leads 13.8% drop in August as trade shifts toward Europe and Middle East.

Japan’s exports to the United States fell 13.8% in August compared to the previous year, marking the fifth consecutive monthly decline.

The Finance Ministry reported that the fall was sharper than July’s 10.1% drop, largely due to tariffs on automobiles and auto parts. Although U.S. duties on Japanese vehicles were recently reduced to 15% from 27.5%, they remain significantly higher than the original 2.5%.

Overall, Japan’s exports were nearly flat in August, slipping 0.1%. Gains in shipments to Europe and the Middle East helped offset the U.S. decline, while imports from China rose 2.1% even as exports to China edged down 0.5%. Imports from the U.S. climbed 11.6% over the same period.

Trade by sector revealed notable shifts: food exports surged 18%, ship exports rose nearly 25%, and imports of computers and aircraft increased 35% and 21% respectively. Meanwhile, Japan’s overall imports fell 5.2%, reflecting continued global trade pressures and uneven demand recovery across key partners.