VINACHEM

Japan’s chemical exports fell by 7.3% year on year to yen (Y) 961 billion in July, weighing on overall shipments abroad which declined for the third straight month, official data showed on Wednesday.

Exports of organic chemicals fell by 19.4% year on year to Y149.3 billion in July, while shipments of plastic materials dipped by 2.3% to Y296.8 billion, according to data published by the Ministry of Finance.

By volume, exports of plastic materials fell by 4.0% year on year to 452,847 tonnes in August.

Japan’s overall exports fell by 2.6% year on year to Y9.36 trillion in July, while imports were 7.5% lower at Y9.48 trillion.

This resulted in a trade deficit of around Y118 billion last month.

Japanese exports of automobiles and motor vehicle parts to the US plunged 27.1% and 17.4%, respectively, in July after Washington imposed a 10% baseline tariff in April on top of a separate 25% duty on cars.

A 15% reciprocal tariff on Japanese imports as well as automobiles and auto parts took effect on 7 August following a trade deal reached between Tokyo and Washington in July.

Elsewhere, Japan’s exports to China fell by 3.5% year on year in July, continuing the losing streak for the fifth straight month, while those to the EU slipped 3.4% and those to southeast Asia were down by 2.9%.

Japan’s economy grew at a faster-than-expected annualized rate of 1.0% in the second quarter, driven by robust exports that weathered trade tensions with the US, according to preliminary government data released last week.