Japan’s July exports drop by 2.6%, steepest plunge in over four years
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Japan’s exports fell by 2.6% in July compared to the previous year, and since February 2021, the largest decreases, the two largest markets (USA and China) have decreased.
The decline was sharper than the 2.1% contraction estimate in the Reuters survey and a decrease of 0.5% in June.
Imports fell by 7.5% to the world’s fourth largest economy and fell less than 10.4%.
The exports to the US continued to decrease, and 10.1% in July and 11.4% of June is slightly softer. The US is the largest market for Japanese exports.
Posts to the mainland China – Japan’s second largest export market – decreased by 3.5% compared to the same month last year, but posts to Hong Kong increased by 17.7%.
. Nikkei 225 After release, it decreased by 0.9% yen It was lightened until 147.79 per dollar.
Weak trade data came after the Japanese economy became stronger than expected in the second quarter, GDP increased by 0.3% compared to the previous quarter and increased by 1.2% compared to the previous year, because net exports led to growth.
Sumitomo Mitsui Banking Corporation’s head FX strategist Hirofumi Suzuki, CNBC’ye GDP version after the export variable, although the export is variable, said that there are higher levels of automobile shipments in April -June.
In March, a car part manufacturer was associated with a capture in the shipments after getting rid of an accident.
Although it does not call the company, Reuters is a Explosion on March 7 In a facility that supplies automobile parts to the world’s largest car manufacturer in Central Japan, Toyota Engine.
As part of Japan’s trade agreement, tariffs on cars have been reduced from 25% to 15%. The car is one of Japan’s biggest exports and constitutes its biggest export to the US in 2024.
The value of automobile exports containing automobiles, buses and trucks to the USA fell 28.4% annually in July compared to a decrease of 26.7% in June.
Japan saw that on July 22, Washington and the so -called “mutual tariff” fell from 25% to 15% threatened by US President Donald Trump at the beginning of that month.
Although the effects of 15 % tariffs will not occur until August data, analysts warned their effects on the Japanese economy.
Senior Economist Masato Koike at Sompo Institute Plus said that on August 14, there is a possibility that Japan could get into the stagnation, depending on the magnitude of the effect of tariffs.
