Japan’s Exports Surge Amid US Tariff Threats
Japan’s exports rose 3.9% in March, marking six consecutive months of growth as firms ramped up shipments in anticipation of US tariffs. While exports to the US increased, those to China declined. Japan’s trade surplus reached 544.1 billion yen, with automobile exports challenged by tariffs, prompting production adjustments by companies like Nissan.
In March, Japan experienced a 3.9% yearly increase in exports for the sixth consecutive month, as companies accelerated shipments of cars and electronics amidst looming US tariffs. Data from the Ministry of Finance indicated that shipments to the US, Japan’s largest export market, rose by 3.1%, despite a 4.8% decline in exports to China. Imports also rose by 2%, leading to a trade surplus of 544.1 billion yen, exceeding forecasts.
US tariffs are significantly affecting Japan’s industrial supply chains, particularly in the automobile sector, which is the nation’s most crucial export. In the previous year, Japan exported commodities worth 21 trillion yen to the US, with automobiles accounting for around 28%. The country is advocating for the removal of these additional tariffs as trade negotiations continue directly with US officials.
Japan manufactures approximately nine million cars annually, exporting 1.5 million directly to the US, while also exporting over 1.4 million vehicles from Mexico and Canada. To mitigate tariff impacts, Nissan plans to reduce production in Japan of the Rogue SUV, one of its most popular models, from May to July 2025.
The increase in Japan’s exports in March suggests resilient economic activity ahead of potential US tariffs. However, ongoing trade tensions and adjustments in production strategies, particularly in the automotive sector, illustrate the challenges Japan faces in navigating its supply chains. Removing or negotiating tariffs is critical for Japan to stabilize its export-driven economy as it seeks to maintain trade relations with the US.
Original Source: www.businesstimes.com.sg
