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Japanese exports to the United States plunged nearly 14% in August as President Donald Trump’s tariffs continued to bite, with official data on Wednesday showing auto shipments down by more than a quarter.
The 13.8% year-on-year fall marked the sharpest drop in more than four years, according to Bloomberg. Japan’s finance ministry reported that car exports collapsed by 28.4%, while auto parts declined 7.1%. The automobile industry, which makes up about a third of Japan’s exports to the US, has been hit hard by a 27.5% levy introduced under Trump’s trade war.
On Tuesday, however, lower tariffs on Japanese vehicles took effect after Washington implemented a new trade pact with Tokyo. Cars will now face a 15% tariff, bringing them in line with many other goods.
While the tariff cut is seen as a win for Japan, analysts warn that levies will continue to weigh heavily on industry, with business lobbies urging Tokyo to pursue further negotiations.
Japan’s auto sector, home to giants like Toyota and Honda, underpins about 8% of national employment. Meanwhile, Japan’s trade surplus with the US — a frequent target of Trump’s criticism — halved in August to 324 billion yen ($2.21 billion).
Trump has defended his tariff strategy as a way to bolster US manufacturing and tackle the country’s large trade deficit, but the policy continues to reverberate through global trade.
