Japan Exports Growth Softens On Higher Trade Tariffs

(RTTNews) - Japan's exports grew at a slower pace in April largely due to the higher tariffs imposed by the US administration, official data revealed Wednesday.

Exports climbed 2.0 percent on a yearly basis in April, slower than the 4.0 percent increase in March, the Ministry of Finance reported. Exports have been rising since last September and the latest growth matched economists' expectations.

Meanwhile, imports declined 2.2 percent, in contrast to the 1.8 percent increase in the previous month. Imports were expected to fall 4.5 percent.

As a result, the trade balance showed a deficit of JPY 115.85 billion compared to a surplus of JPY 559.43 billion in March. In the same period last year, the deficit totaled JPY 504.69 billion. Data showed that exports to the US declined 1.8 percent in April, which was the first annual fall in four months. This followed a 3.1 percent rise in March.

At the same time, the decline in imports from the US deepened to 11.6 percent from 4.6 percent.

Consequently, the trade surplus with the US decreased to JPY 780.6 billion from JPY 846.86 billion in March. US President Donald Trump had levied a 25 percent tariffs on imports of auto, steel and aluminum. New tariffs weighed heavily on the Japan's auto sector.

Ahead of the national assembly elections in July, Japan's government is in no hurry to reach a deal that is disadvantageous to the nation. Japan is aiming a zero levy for its exports to the US.

Even before the rise in trade tariffs, Japan's economy contracted 0.2 percent in the first quarter due to weaker foreign demand. On an annualized basis, the economy shrank 0.7 percent, marking the first fall in a year.