Newly manufactured cars awaiting export at a port in Yokohama, south of Tokyo, Japan, on March 27, 2025.
Issei Kato | Reuters
Japan’s exports contracted less than expected in August as shipments to its largest trading region — Asia — rebounded, though the overall growth stayed negative for a fourth straight month.
Japanese shipments fell 0.1% year on year, compared to a 2.6% fall in July. This was much softer than the 1.9% contraction expected by economists polled by Reuters.
The country’s imports declined at a softer pace of 5.2%, compared to the 7.4% contraction in July, but more than the 4.2% fall expected in the Reuters poll.
Exports to Asia climbed 1.7% compared to the same period last year, while shipments to Western Europe also saw a sharp 7.7% jump, partially offsetting a steeper fall in exports to the U.S.
Outbound goods to the U.S. dropped 13.8% year on year, more than the 10.1% contraction seen in the prior month following a trade deal with Washington in late July, which saw tariff rates lowered to 15% from 25%.
Shipments of autos to the U.S. also continued to plunge, falling 28.3% year on year, just marginally softer than the 28.4% decline in July. Autos were Japan’s largest exports to the U.S. in 2024.
Exports to mainland China fell 0.5% year on year, but shipments to Hong Kong jumped 14.4%. China is Japan’s largest trading partner on a single-country basis.
The decision comes ahead of the Bank of Japan’s rate decision later on Friday, with economists expecting the central bank to continue to hold rates at 0.5%.
—This is breaking news, please check back for updates.
