JAPAN'S AUTOMOBILE EXPORTS TO THE US DECLINE

Japan's automobile exports to the US have significantly decreased due to customs tariffs imposed by the US. On an annual basis, exports dropped by 24.7% in May, marking the sharpest decline in the last eight months.

The 25% tariff applied by the US in April on Japanese automobiles has hit major Japanese brands like Toyota, Honda, and Nissan. Japan's total exports to the US also fell by 11.1%, recording the worst performance since February 2021.

In May, Japan posted a trade deficit of 637.6 billion yen. Experts warn that if these tariffs remain, exports could decline by an additional 20-30%, negatively impacting Japan's economy.

Japanese officials confirmed that no agreement was reached in negotiations with the US. To compensate for losses, Japanese companies are now turning to alternative markets like Southeast Asia. However, replacing the vast US market remains challenging.

This situation poses a serious threat to Japan's export-driven economy. In the coming period, relations with the US and success in alternative markets will determine Japan's economic future.