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Japan’s exports fall 14% due to U.S. tariffs

nabil bank

Tokyo. Japan’s exports to the United States fell nearly 14% in August. WASHINGTON (AP) — U.S. President Donald Trump’s new tax policies have had a major impact, data released Wednesday showed. According to the data, auto shipments have decreased by more than a quarter.

The drop comes after US President Donald Trump announced tariffs on countries aimed at disrupting markets and global trade. According to Bloomberg, the price of Japanese goods to the United States fell 13.8 percent, the biggest drop in four years.

According to Japan’s finance ministry, auto exports fell 28.4 percent and auto parts fell 7.1 percent. Since the beginning of the year, Trump’s trade war has led to a steady decline in car and vehicle shipments.

The auto industry, which accounts for about a third of Japan’s exports to the United States, is hit by a 27.5 percent levy. However, a new trade deal that came into effect on Tuesday has led to lower U.S. tariffs on Japanese autos. Now, vehicles including cars will have to pay 15 percent toll like many other items.

The implementation of the agreement is seen as a temporary victory for Japanese industry. But pressure from levies has led Japanese business lobbies to expect Tokyo to push ahead with further negotiations.

Trump has imposed high tariffs on imports from countries around the world in a bid to boost U.S. production and reduce the huge trade deficit. Japan’s automobile industry — including big companies like Toyota and Honda — account for about eight percent of the country’s total employment.

Japan’s trade surplus with the United States, a longtime critic of Trump’s criticism, fell 50 percent to 324 billion yen ($2.21 billion) in August.

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