Japan September exports rebound, after four straight months of declines
YOKOHAMA, KANAGAWA, JAPAN – 2025/08/28: A loaded container ship docked in Tokyo Bay.
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Japan’s exports rose 4.2% annually in September, leaving behind four months of decline; Shipments to Asia saw strong growth, partially offsetting the decline in exports to the United States.
However, exports missed expectations for a 4.6% increase, according to the median forecast of a Reuters survey of economists.
While shipments to Asia increased by 9.2% compared to the same period last year, exports to the USA, Japan’s second largest trading partner, decreased by 13.3%. Exports to mainland China, Japan’s largest trading partner, increased by 5.8%.
Japan’s exports have fallen into negative territory as the country grapples with U.S. tariffs, with auto shipments to the world’s largest economy taking a big hit.
Auto shipments to the US fell 24.2% in value terms in September; This is a softer decline compared to the 28.4% decline in August.
Imports in the world’s fourth-largest economy rose 3.3% year-on-year, reversing a 5.2% decline in August and outpacing the 0.6% growth expected by a Reuters poll.
In July, Tokyo signed a trade deal with Washington, reducing tariffs on its exports to the United States to 15% from the 25% originally proposed by President Donald Trump.
The data came a day after the country’s first female prime minister was elected in Sanae Takaichi, following months of political turmoil following election losses to the ruling Liberal Democratic Party under former Prime Minister Shigeru Ishiba.
Takaichi’s stance on a loose snap policy and massive fiscal stimulus is likely to weaken the yen, make Japan’s exports more competitive and benefit exporters – indicator’s heavyweights Nikkei 225 It reached a record high on Tuesday.
Markets have priced in the so-called “Takaichi trade” since September when he took over the helm of the LDP, which caused the Nikkei to rise to record highs and the yen to weaken above the 150 level.
However, the country’s economy performed better than expected; Second quarter GDP was revised upwards to 0.5% quarter on quarter from the 0.3% estimated in the first quarter.
