Japan’s exports expand in March ahead of US tariffs
The country produces nine million cars annually at home and ships about 1.5 million of them to the United States
[TOKYO] Japan’s exports rose for a sixth straight month in March, data showed on Thursday (Apr 17), as the threat of sweeping US tariffs drove Japanese companies to ramp up shipments of cars and electronic parts.
US President Donald Trump on Apr 2 introduced a 25 per cent tariff on car and truck imports and threatened a 24 per cent tariff on all Japanese goods, though the latter has been cut to a baseline 10 per cent for 90 days.
Total exports rose 3.9 per cent year on year in March, Ministry of Finance data showed, less than a median market forecast for a 4.5 per cent increase and following an 11.4 per cent rise in February.
Shipments to the United States, Japan’s biggest export destination, rose 3.1 per cent in March from a year earlier, while those to China were down 4.8 per cent, the data showed.
Imports grew 2 per cent in March from a year earlier, compared with market forecasts for a 3.1 per cent increase.
As a result, Japan ran a trade surplus of 544.1 billion yen (S$5 billion) in March, compared with the forecast of 485.3 billion yen.
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US trade tariffs are shaking up Japan’s industrial supply chains, particularly for automobiles, the country’s biggest export item.
Japan exported 21 trillion yen worth of goods to the United States last year, with automobiles representing roughly 28 per cent of the total.
It is seeking full removal of the additional tariffs. Trump said on Wednesday there was “big progress” when he made the surprise move to negotiate directly with Japanese officials in Washington about the barrage of tariffs he has imposed on global imports.
Japan produces nine million cars annually at home and ships about 1.5 million of them to the United States. Furthermore, Japanese automakers export more than 1.4 million cars to the United States from Mexico and Canada.
Scrambling to mitigate the impact, automaker Nissan plans to cut Japanese production of its top-selling US model, the Rogue SUV, over May to July. REUTERS
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