Japan-U.S. Trade Hit Hard as Auto Exports Collapse Under Trump Tariffs

Vehicles are parked for export at a Yokohama port, near Tokyo on Aug. 1, 2025. (Takuto Kaneko/Kyodo News via AP)

Japan’s exports to the United States plummeted 13.8% in August compared to the same month the previous year, marking the fifth straight month of declines, as auto exports were hit by President Donald Trump’s tariffs.

The Finance Ministry data released Wednesday showed the rate of the drop in exports to the U.S. compared to the previous year worsened from a 10.1% slip in July.

U.S. tariffs on Japanese automobiles and auto parts decreased from 27.5%, the amount Trump initially levied, to 15% this week, but that’s still higher than the original 2.5%.

Wednesday’s data reflect the month of August, when the tariffs were higher. Japan’s overall exports were little changed, slipping 0.1%, as exports grew to Europe and the Middle East.

The provisional data for August showed Japan’s imports from the world fell 5.2% from a year ago. Imports from China grew 2.1%, while exports to China fell 0.5%. Imports from the U.S. grew 11.6%.

Exports to the world grew in food, gaining 18%, as well as in ships, growing by nearly 25%. Imports grew in computers, adding nearly 35% on-year, while aircraft rose 21%.

(AP)

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