Japan exports growth slows for a second straight month as U.S. tariffs bite

Japan exports slowed for a second straight month, government data showed Wednesday, as the country reels under U.S. President Donald Trump's sweeping tariffs.

Exports growth of 2% was in line with Reuters-polled analysts' estimates, its slowest since October last year and the worst showing since September when exports contracted 1.7%.

The country's imports shrank 2.2% from a year ago, less than estimates of a 4.5% decline.

Japan's real gross domestic product contracted an annualized 0.7% in the first quarter this year, preliminary government data showed, dragged down by stagnant private consumption and slowing export growth.

Japan currently is being charged a 25% levy on its auto, steel and aluminum exports to the U.S. The key U.S. ally is subject to the 10% baseline tariffs imposed by Trump on most trade partners. Japanese goods also face 'reciprocal' tariffs of 24% which have been temporarily suspended.

Trump on April 2 levied "reciprocal" tariffs on over 180 countries including Japan, only to suspend them later for 90 days, allowing trade partners to strike deals with Washington.

Automobiles are Japan's top export to the U.S., accounting for 28.3% of all shipments in 2024, according to customs data.

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