Japan Posts July Trade Deficit as US Exports Fall for Fourth Month

Aug 20, 2025 | News On Japan

TOKYO - Japan recorded a trade deficit of 117.5 billion yen in July as exports to the United States fell by more than 10 percent, marking a fourth consecutive monthly decline and underscoring the impact of so-called Trump tariffs.

According to data released by the Ministry of Finance, the trade balance — exports minus imports — turned into a deficit for the first time in two months.

The sharpest drop came in exports to the United States, which totaled 1.7285 trillion yen, down 10.1 percent from a year earlier. This marked the fourth straight month of decline since April.

Auto exports were particularly affected, plunging 28.4 percent. With the Trump administration imposing additional tariffs on automobiles, manufacturers have been lowering vehicle prices in an effort to sustain sales volumes, weighing heavily on export revenues.

Source: TBS

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