Economy

Japan's exports post first drop in 8 months as US tariffs hit auto firms

Date: Jun 18, 2025

Japan's exports fell in May for the first time in eight months, as big auto makers like Toyota were hit by sweeping United States (US) tariffs, and the failure of Tokyo to clinch a trade deal this week will likely pile pressure on a fragile economy

Prime Minister, Shigeru Ishiba said after the Group of Seven Summit in Canada on Tuesday his country had not reached a comprehensive tariff agreement with Washington as some disagreements persisted between the two nations.

Japan and the US "explored the possibility of a deal until the last minute," he added.

Tokyo is scrambling to find ways to get Washington to exempt Japan's automakers from 25% automobile industry-specific tariffs, which are hurting the country's manufacturing sector.

Japan also faces a 24% 'reciprocal' tariff rate starting on July9 unless it can negotiate a deal with Washington.

--Reuters--

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