TOKYO (Reuters) – Japan’s exports to the United States fell for the first time in 17 months and Japanese business sentiment soured amid worries about US President Donald Trump’s protectionist trade policies.
Exports to the United States dipped 0.9 percent in June from the same period a year ago on waning shipments of cars and semiconductor manufacturing equipment, two of Japan’s most important export products.
The data highlighted concerns among Japanese policymakers who worry Mr Trump may resort to tariffs or other protectionist measures to fix trade imbalances with Japan under his “America first” policy.
With American imports down 2.1 percent, Japan’s trade surplus with the United States widened 0.5 percent year-on-year to 590.3 billion yen ($5.24 billion). That could make it a potential target for Mr Trump’s protectionist policies.
Japan’s global exports rose 6.7 percent in June, while imports gained 2.5 percent.
“Overall exports remain healthy for now, but we are not sure how things are going to turn out on the trade policy front,” said Shuji Tonouchi, senior market economist at Mitsubishi UFJ Morgan Stanley Securities. “Its possible talk of tariffs and trade friction could reduce corporate investment.”
