TOKYO — Japan’s exports to the United States fell sharply in August, plunging 13.8 percent year-on-year, as U.S. President Donald Trump’s tariffs continued to weigh on trade.
According to data released by Japan’s finance ministry on Wednesday, auto exports dropped 28.4 percent, while auto parts fell 7.1 percent. The auto sector, which makes up about one-third of Japan’s exports to the U.S., has been hit hard by a 27.5 percent levy imposed earlier this year.
The decline marked the steepest drop in more than four years, Bloomberg reported. Japan’s trade surplus with the U.S. also fell nearly 50 percent to 324 billion yen ($2.21 billion).
However, relief came this week as Washington implemented a recent trade pact with Tokyo, reducing tariffs on Japanese vehicles to 15 percent the same rate applied to many other goods. Despite the reduction, Japanese business leaders say the levies continue to hurt the industry and are calling for further negotiations.
Japan’s automobile sector, led by companies such as Toyota and Honda, accounts for around eight percent of the country’s jobs, making the trade dispute a significant concern for its economy.
