Japan racks up trade deficit amid threat from Trump’s tariffs
JAPAN, JUL 17 – Japan recorded a $15 billion trade deficit in the first half of 2025 as U.S. tariffs cut auto exports by 25%, pressuring negotiations before upcoming trade talks.
- On August 1, the United States will implement 25 percent tariffs on Japanese vehicle imports amid ongoing trade tensions in Japan.
- These tariffs follow prolonged negotiations, with Trump pushing for reciprocal market access to address a $70 billion U.S. trade deficit with Japan.
- Japan's auto exports to the U.S. dropped over 26 percent in June, deeply affecting companies like Mazda, which has prioritized protecting suppliers, dealers, and employees.
- Mazda reported an 18.6 percent fall in U.S. sales in May and has formed a tariff strategy team meeting weekly in Hiroshima to mitigate impacts.
- The tariffs raise concerns about inflation and market share loss for smaller Japanese automakers, potentially pressuring Japan to finalize a trade deal as U.S. officials engage at the World Expo in Osaka.
32 Articles
32 Articles
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