TOKYO: Japan’s exports rose for the first time in five months as shipments of chips and electronic parts advanced, while goods destined for the United States continued to decline amid President Donald Trump’s tariffs.
Exports gained 4.2% in September from a year earlier, with mineral fuel shipments also contributing to the increase, the Finance Ministry reported yesterday. Economists had forecast a 4.4% increase.
Shipments to the United States declined 13.3%, marking the sixth straight decrease.
Overall, Japan’s trade balance was in the red on an unadjusted basis, with a 234.6 billion yen deficit.
Imports rose 3.3%, compared with the consensus estimate of a 0.6% gain.
“Exports to the United States remain weak, namely in automobiles, due to the impact of tariffs,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
“On the other hand, exports to the European Union (EU) are expanding in value terms due to the strong euro and weak yen, and I believe Japanese exports are also benefitting from China’s domestic demand-stimulating policies.”
Japan’s exports to the EU and China rose by 5% and 5.8%, respectively.
The rebound in Japan’s exports came as shipments of semiconductors and other electrical components rose 12.6%, supported by strong demand in Asia.
In contrast, shipments of cars and chips to the United States foundered even after Washington lowered its tariffs on Japanese cars to 15% from 27.5% in mid-September.
The Trump administration has also set the levy on many other products at that rate.
Analysts estimate that Japan’s economy contracted for the first time in six quarters in the three months through September as US tariffs hit exporters.
The fallout from the levies could work against the positive cycle linking inflation to wage gains and growth that authorities are seeking. — Bloomberg
