MNI BRIEF: Japan June Exports Fall For The Second Month

Japan’s exports declined for the second consecutive month in June, falling 0.5% year-on-year following a 1.7% drop in May, as shipments of automobiles and iron and steel products weakened under the impact of U.S. tariffs, according to data released Thursday by the Ministry of Finance.

The data is unlikely to prompt an immediate shift in the Bank of Japan’s assessment that export trends have remained largely flat.

Exports of automobiles declined 7.3% in June, marking the third consecutive monthly drop following a 6.9% decrease in May, after a front-loaded surge earlier in February and March. Exports of iron and steel products fell 13.2% in June compared to a 20.6% decline in May.

Imports rose 0.2% in June for the first rise in three months, following a 7.7% drop in May.

Japan's trade surplus reached JPY153.1 billion in June, the first surplus in three months following a JPY638.6 billion deficit previously.

Exports to China, Japan’s largest trading partner, declined 4.7% in June, marking the fourth consecutive monthly decrease following an 8.8% drop in May, reflecting the impact of China’s slowing economy.

Exports to the United States declined 11.4% in June, marking the third consecutive monthly decrease following an 11.0% drop in May. Automobile exports fell 26.7%, after a 24.7% decline in May, reflecting a correction to front-loaded shipments in March and April.