

Photo: iStock/MicroStockHub
Exports from Japan to the United States plunged by nearly 14% year-over-year in August, as President Donald Trump's tariffs on cars and auto parts continue to strain trade between the two countries.
According to Japanese Finance Ministry data reported by the Associated Press, shipments of automobiles from Japan to the U.S. fell by more than 28% in August, mirroring an almost identical year-over-year dip in the previous month. And although the U.S. lowered its tariffs on Japanese automobiles and parts from 27.5% to 15% on September 16, that 15% rate remains well above the 2.5% tariffs that had been in place for decades. Nearly a quarter of Japan's exports to the U.S. come from its automotive sector, which accounts for 3% of its total economy.
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Japan's overall exports combined across all countries saw a more modest 0.1% decline in August, helped by a 7.7% increase in shipments to Western Europe, and a 1.7% bump in exports to other Asian countries. The 0.1% dip was also lower than the projected 1.9% decline that was originally forecast by economists. But, with imports dropping by 5.2% in August, Japan ran a trade deficit of 242.5 billion yen ($1.66 billion) for the month, an increase from the 118.4 billion yen deficit Japan reported in July.
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