Financial News: Japan Exports Growth Slows More Than Expected

Japan Exports Growth Slows More Than Expected

04/17/2025 - 04:16:00 (RTTNews)

(RTTNews) - Japan exports growth weakened more than expected in March partly reflecting the impact of US trade tariffs, while imports recovered moderately, official data showed on Thursday. Exports increased 3.9 percent on a yearly basis in March, slower than the 11.4 percent rise in February, the Ministry of Finance revealed.

Shipments were forecast to grow 4.5 percent. Nonetheless, this was the sixth consecutive rise in exports.

At the same time, imports grew 2.0 percent, in contrast to the 0.7 percent decrease in February. However, the rate was weaker than economists' forecast of 3.1 percent.

As a result, the trade balance posted a surplus of JPY 544.05 billion compared to a JPY 349.85 billion surplus in the same period last year.

Exports to the US rose 3.1 percent, while imports from the US declined 4.6 percent. At the same time, exports to China fell 4.8 percent and imports from China surged 15.9 percent.

Data showed that exports to Hong Kong, Taiwan and South Korea increased in March. Overall exports to Asia advanced 5.5 percent and imports were up 11.4 percent.

ING economist Min Joo Kang said all eyes now turn to trade talks with the US as Japanese exports disappoint and tariff headwinds intensify.

The economist noted that there is rerouting of exports within Asia to avoid tariff conflicts with the US. As China is the largest producer of semiconductors, the economist expressed concerned about a downward cycle in the sector.

Capital Economics economist Marcel Thieliant said exports will rise again over the next few months as US importers rush to place orders before the 90-day suspension of Trump's reciprocal tariffs expires in July.

Thieliant said the base case is that the reciprocal tariffs will be suspended indefinitely, which means that export volumes should return to normal levels again before long.

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