Japanese Exports Decline for Fourth Consecutive Month

Tokyo: Japanese exports declined for the fourth consecutive month in August, affected by higher US tariffs that are increasingly pressuring the automotive sector and other manufacturing industries. According to Yemen News Agency, exports fell 0.1% year-on-year, a smaller decline than the 1.9% forecast, after falling 2.6% in July. Imports fell 5.2% due to lower oil prices, resulting in a trade deficit of 242.5 billion yen. Shipments to the United States fell 13.8% year-on-year, the largest decline since February 2021, driven by a 28.4% drop in auto exports and a 38.9% drop in chipmaking equipment exports. This narrowed the trade surplus with Washington to 324 billion yen, the lowest level since January 2023. Experts expect the Japanese economy to contract 1.1% in the current quarter due to weak external demand. Meanwhile, the Bank of Japan has expressed caution about raising interest rates amid uncertainty over the impact of US tariffs, especially since the decline in exports could impact investment spendi ng and wages, despite companies continuing to boost their factory investments, particularly in electric vehicle production.