Despite a marked decrease in Japan’s exports to the US after high tariffs were imposed on its goods by the US administration, the island nation’s overall exports grew in September on the back of high shipments to Asia, as per data released by the Japanese Ministry of Finance.
Japan’s exports grew 4.2 per cent in September, according to the country’s finance ministry data shared on Wednesday, with exports to Asia jumping 9.2 per cent in the last month compared to the same period a year earlier.
Exports to the US, meanwhile, dropped 13.3 per cent, which marked the sixth straight month of declines in this year. On the other hand, it exports to China surged 5.8 per cent compared to last year.
Japanese auto shipments to the US were the worst hit, dropping 24.2 per cent in September alone. Automaker giants like Toyota Motor Corp. are pillars of Japan’s economy, and have been reeling under the impact of tariff hikes by the US, especially on the country’s auto sector.
When it comes to imports, shipments coming in to Japan edged up 3.3 per cent in September overall, growing much more, at 6 per cent in Asia, including a 9.8 per cent rise in imports from China.
Also Read: Japan's economy hit by falling exports to the US
The findings come a day after Sanae Takaichi became the first woman prime minister in Japan after being chosen in a parliamentary vote. She is known for her nationalist-leaning conservative views, but is also seen as a proponent of bigger public spending, which has sent share prices generally rising in Tokyo in recent sessions.
Takaichi has also promised higher wages, as well as looser monetary policy, which would favour a weak Japanese yen. That would be a boon for the nation’s giant exporters by raising the value of overseas earnings when converted into yen.
However, Takaichi faces an uphill battle in realising her policies because the ruling Liberal Democratic Party, even with coalition partners, does not have a majority in either house of parliament. Her own party remains divided on her ideas.
Trump, who is expected to visit Japan later this month to meet with Takaichi, announced a trade framework with Japan in July that placed a 15 per cent tax on Japanese goods.
At that time, Japan promised to invest $550 billion into the US and open its economy more to American automobiles and rice. The 15 per cent tax on imported Japanese goods was a significant drop from the 25 per cent rate that Trump had said earlier, and a huge drop from the 50 per cent tariffs placed on Indian goods.
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