Japanese shipments fell 0.1% year on year, compared to a 2.6% fall in July. This was much softer than the 1.9% contraction expected by economists polled by Reuters.<\/p>\n
The country’s imports declined at a softer pace of 5.2%, compared to the 7.4% contraction in July, but more than the 4.2% fall expected in the Reuters poll.<\/p>\n
Exports from the world’s fourth-largest economy have fallen into negative territory as the country grapples U.S. tariffs and a slowdown from the front-loading of exports at the start of the year.<\/p>\n
Japan is also looking at political uncertainty as Prime Minister Shigeru Ishiba is set to step down<\/a>, following electoral debacles that saw the ruling Liberal Democratic Party lose its majority in both the lower and upper houses of parliament.<\/p>\n Exports to Asia climbed 1.7% compared to the same period last year, while shipments to Western Europe saw a sharp 7.7% jump, partially offsetting a steeper fall in exports to the U.S.<\/p>\n Outbound goods to the U.S. dropped 13.8% year on year, more than the 10.1% contraction seen in the prior month following a trade deal with Washington<\/a> in late July, which saw tariff rates lowered to 15% from 25%.<\/p>\n Shipments of autos to the U.S. also continued to plunge, falling 28.3% in terms of value year on year, just marginally softer than the 28.4% decline in July. Autos were Japan’s largest exports to the U.S. in 2024.<\/p>\n Exports to mainland China fell 0.5% year on year, but shipments to Hong Kong jumped 14.4%. China is Japan’s largest trading partner on a single-country basis.<\/p>\n
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