Japan exports fall at sharpest pace in 8 months as U.S. shipments plummet
CNBC3 days
Japan Exports Fall 1.7% in May Amid Rising U.S. Tariffs
Above: A woman walks past an electronic board showing the Nikkei 225 index on the Tokyo Stock Exchange in Tokyo on June 17, 2025. Image copyright: Kazuhiro Nogi/AFP/Getty Images
The Spin
Narrative A
Trump's punitive tariffs have shattered Japan's export momentum, marking the first decline in eight months as his 25% automotive levies devastate major manufacturers like Toyota. His erratic trade stance threatens Japan's fragile recovery while destabilizing America's most crucial Asian ally precisely when regional security demands unwavering partnership against China.
Narrative B
Japan's export decline presents an unexpected opportunity: Trump's wavering approval ratings and mounting domestic pressure reveal his tariff policy's unsustainability. With Asia-Pacific nations refusing retaliation, Japan can lead regional cooperation through CPTPP and RCEP, strengthening multilateral trade while Trump's protectionist experiment crumbles under American economic anxiety.