Japan logged a trade surplus of JPY 153B in June, with exports down -0.5% yoy and imports up 0.2% yoy. The most striking detail was a sharp -11.4% yoy drop in exports to the US, the steepest decline since February 2021. Imports from the US also fell, declining -2.0% yoy.
Automobile shipments to the US fell -26.7% by value, while auto parts (-15.5% yoy) and pharmaceuticals (-40.9% yoy) also saw double-digit drops. Still, a 3.4% yoy rise in car export volumes suggests Japanese automakers are slashing prices and absorbing costs to maintain market share.
On a seasonally adjusted basis, exports dipped -0.4% mom while imports fell -1.0%, leaving a JPY 235B trade deficit.
The report comes just weeks before a 25% reciprocal US tariff on Japanese goods takes effect on August 1. That is one percentage point higher than the 24% rate first announced on “Liberation Day” in April.
