18 June 2025 | Other

Decline in Japan's export raises recession risks amid US tariff imposition

Decline in Japan's export raises recession risks amid US tariff imposition

Japan's exports declined for the first time in eight months. The trump administration’s tariffs have negatively impacted global trade, raising risks of a technical recession in the Asian nation following an economic contraction earlier this year, Bloomberg reports.

According to Japan's Ministry of Finance, exports declined by 1.7% year-on-year in value terms in May, primarily due to reduced shipments of automobiles and steel.

Japan's imports dropped by 7.7%, with the sharpest declines seen in crude oil and coal shipments. The trade deficit stood at 637.6 billion yen ($4.39 billion).

Earlier, US President Donald Trump imposed a 25% tariff on Japanese vehicles and auto parts imports, along with a baseline 10% tax on all other Japanese goods. In early June, American administration doubled steel and aluminum duties to 50%.

The tariffs will remain in effect as Donald Trump and Japanese Prime Minister Shigeru Ishiba failed to reach an agreement after two months of negotiations, Bloomberg notes.

Overall exports to the US fell 11.1% while imports slumped 13.5%, resulting in a trade surplus of 451.7 billion yen ($3.11 billion).

Anton Volkov MarketCheese
Period: 23.10.2026 Expectation: 470 pips
Buying Brent crude with $106.00 in mind
Yesterday at 10:12 AM 18
Period: 09.11.2026 Expectation: 3000 pips
Invest in USDCAD up to 1.45000
Yesterday at 08:37 AM 16
Period: 29.10.2026 Expectation: 800 pips
Sell GBPUSD down to 1.3180
08 October 2026 38
Period: 05.11.2026 Expectation: 300 pips
Buy Brent crude with $103 in sight
08 October 2026 21
Gold sell
Period: 22.10.2026 Expectation: 180 pips
Gold sell-off targets $3,940
08 October 2026 35
Period: 08.11.2026 Expectation: 6200 pips
Go short on USDJPY with 152.00 in view
08 October 2026 53
Go to forecasts