TOKYO — Japan’s exports fell for a fourth straight month in August, government data showed on Wednesday, as elevated US tariffs took a deeper toll on the country’s automotive and other manufacturing sectors.
“Japanese automakers are still mostly absorbing the tariff costs by cutting export prices to maintain US sales volumes,” said Saisuke Sakai, chief Japan economist at Mizuho Research.
“But some of them, unable to withstand rising costs, have begun increasing prices to pass them on to consumers,” he said.
“Coupled with growing uncertainties over the US economy, the tariff impact on Japan’s exports and output is set to intensify towards the year-end.”
Total exports by value dropped 0.1 percent year-on-year in August, the data showed, less than a median market forecast for a 1.9 percent decrease and following a 2.6 percent fall in July.
Exports to the United States plunged 13.8 percent in August from a year earlier, representing the largest drop since February 2021, dragged down by a 28.4 percent fall in automobiles and 38.9 percent plunge in chipmaking equipment.
The volume of US-bound shipments fell 12.0 percent, extending the 2.3 percent decline seen in July.
The export plunge helped halve the trade surplus with the US to 324 billion yen ($2.21 billion), the smallest since January 2023.
Exports to China were down 0.5 percent, while those to Asia and the European Union rose, partially offseting the plunge in US-bound exports.
Total imports dropped 5.2 percent in August from a year earlier, compared with market forecasts for a 4.2 percent increase, reflecting lower oil prices.
As a result, Japan ran a trade deficit of 242.5 billion yen ($1.66 billion) in August, compared with the forecast of a deficit of 513.6 billion yen.
Washington agreed on a baseline 15 percent tariff rate on nearly all Japanese imports in late July, down from the initial 27.5 percent on autos and a 25 percent duty threatened for most other goods, offering some relief to Japanese exporters.
