Trump's tariff toll: Japanese exports to US slip 2% in April, trade deficit at $115 billion

Japan’s exports to the United States slipped by almost 2% in April, as the impact of higher US tariffs under US President Donald Trump began to bite.

According to figures released by the finance ministry, though Tokyo’s overall exports rose 2% year-on-year in April, they were still down from 4% in March.

Similarly imports fell 2.2%, with goods coming from the US, its largest single trading partner dropping by more than 11%.

This transition pushed Japan into its first trade deficit of three months, worth 115.8 billion yen or $804 million. Last year during the corresponding period, this deficit stood at 504.7 billion yen.

Weakening exports could further weigh down the country’s economy, after it already shrank 0.7% in the last quarter.

A major concern also lies in the 25% US tariff on car imports, a key pillar of Japan’s economy. Vehicle exports to the US were down nearly 6% compared to April last year. While the US eased some restrictions, tariffs on steel and aluminium remain in place.

Adding to the pressure is the stronger yen, which has appreciated against the US dollar. The exchange rate now hovers around 144 yen to the dollar, compared to 155 yen a year ago, reducing the value of Japan’s exports when converted to yen.

Despite the difficulties with the US, Japan’s trade with Southeast Asia has shown some growth, offering a partial cushion.

Economic revitalisation minister Ryosei Akazawa, who is leading Japan’s tariff negotiations, is expected to visit Washington for a third round of talks with American officials.