Japan’s exports rise as shipments to the US bounce back
Japan’s exports increased by 6 percent; Shipments to the United States increased for the first time since March as uncertainties regarding tariffs decreased following the trade agreement with the Trump administration.
Preliminary data released on Wednesday showed Japan’s total imports rose 1.3% in November from a year earlier, posting a surplus of 322.2 billion yen ($3.1 billion).
Exports to the United States rose nearly nine percent from the previous year, as shipments of automobiles, chemicals and cameras helped offset declines in the machinery and iron and steel sectors.
U.S. oil imports have nearly tripled, with sharp increases in imports of grain and other food products.
Japan’s tariff deal with President Donald Trump’s administration, which set the base import tax for most products at 15 percent instead of the 25 percent tariff plan, helped increase passenger car shipments by 8 percent when measured by the number of vehicles.
But the value of these cars, trucks and buses increased by only 1.5 percent; This reflects automakers’ reluctance to pass on costs to consumers through higher tariffs.
Imports from the United States rose more than seven percent, but Japan still recorded a trade surplus of 739.8 billion yen, up 11 percent from the previous year.
Japan’s exports to the European Union rose nearly 20 percent last month from a year earlier, boosted by a surge in demand for machinery, vehicles and other manufactured goods.
However, tensions with Beijing took a toll after Prime Minister Sanae Takaichi commented on Taiwan’s defense; Exports to China fell 2.4 percent due to weaker shipments of chemicals, machinery and vehicles.
Despite the nascent recovery in trade with the United States, the United States’ largest trading partner, higher tariffs will likely continue to weigh on exports, Norihiro Yamaguchi of Oxford Economics said in a report.
Still, he predicts Japan’s exports will likely improve next year.
“Spillovers from strong U.S. AI-related spending will likely also support exports,” Yamaguchi said.
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