Japan’s exports expand in February on stockpiling amid tariff fears
[TOKYO] Japan’s exports rose for a fifth straight month in February, data showed on Wednesday (Mar 19), possibly boosted in part by some stockpiling amid growing concerns over US President Donald Trump’s aggressive tariff policies.
Total exports rose 11.4 per cent year-on-year in February, data showed, less than a median market forecast for a 12.1 per cent increase and following a 7.2 per cent rise in January.
The threat of Trump’s aggressive tariffs has led some Japanese companies such as Sony Group to stockpile inventory in the United States, a step that could have temporarily boosted overall export volumes.
Exports to the US rose 10.5 per cent in February from a year earlier, while those to China were up 14.1 per cent, the data found.
Shipments to China may have been affected by more working days last month, with the Lunar New Year holiday ending earlier than usual this year.
Imports dropped 0.7 per cent in February from a year earlier, compared with market forecasts for a 0.1 per cent increase.
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As a result, Japan ran a trade a surplus of 584.5 billion yen (S$5.2 billion), compared with the forecast of a surplus of 722.8 billion yen.
Trump raised tariffs on imports of steel and aluminium to a 25 per cent, effective last week, without exemptions or exceptions. He has also promised tariffs beginning April 2 on autos, Japan’s key exports.
The US is its biggest export destination, accounting for 21 trillion yen worth of goods with automobiles representing roughly 28 per cent of that.
Japanese companies are also increasingly concerned that Trump’s protectionist policies could trigger a broader economic slowdown and hit the country’s export-reliant economy, while hoping that strong wage growth helps sustain domestic consumption and the economic recovery.
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