Japan June chemical exports fall 5.2% as US tariffs weigh
Japan’s chemical exports in June declined by 5.2% year on year to yen (Y) 978.5 billion ($6.6 billion), amid a second consecutive month of overall exports declining, preliminary data from the Ministry of Finance (MOF) showed.
Exports of organic chemicals fell by 15.8% year on year to Y145.3 billion in June, while shipments of plastic products slipped by 3.7% to Y283.6 billion, the MOF said on Thursday.
By volume, June exports of plastic materials fell by 9.4% year on year to 416,008 tonnes.
Japan’s total exports for the month fell by 0.5% year on year to Y9.16 trillion, continuing a decline beginning in May as US President Donald Trump’s 25% tariffs on all automobiles weighed on Asia’s third-largest economy.
Overall imports rose by 0.2% year on year to Y9 trillion in June, resulting in a trade surplus of Y153 billion.
Overall shipments to the US – its largest export destination – fell by 11.4% year on year to Y1.71 trillion in June.
Japan’s trade surplus with the US shrank by 22.9% year on year to Y669.3 billion in June.
Exports of cars to the US slumped by 25.3% year on year to Y415 billion in June, while shipments of motor vehicle parts fell by 15.5% to Y90.6 billion.
Overall chemicals shipments to the US fell by 10.3% year on year to Y133.5 billion in June.
Japan has thus far failed to strike a trade deal with the US, nor has it managed to stave off an additional 25% tariff on automobiles. The US has slapped a 25% rate on all goods from Japan to take effect on 1 August if a deal cannot be reached.
More trade talks are set to take place amid an upcoming upper house election in Japan on 20 July, which could threaten the Japanese Prime Minister Shigeru Ishiba’s party’s position in Parliament.
– Source: ICIS –