Due to the impact of tariffs, Japan's exports have fallen for the first time in eight months.

Japanese exports in May fell for the first time in 8 months, highlighting the impact of President Trump's tariff policies. Exports, which are the main engine of Japan's economic growth, decreased by 1.7% year-on-year in May. Data from the Japanese Ministry of Finance on Wednesday showed that this decline, influenced by a decrease in shipments of automobiles and steel, marked a significant reversal from the 2.0% increase in April. A survey by data provider FactSet of economists had previously expected a slight increase of 0.1% in May exports. The data showed that due to weak demand for automobiles, auto parts, and semiconductor manufacturing equipment, Japanese exports to the US fell by 11.1% year-on-year. Japan's trade surplus with the US shrank by 4.7% year-on-year, marking the first decline in five months. It is still uncertain whether Japan will be able to successfully obtain an exemption from the US tariffs aimed at reducing the trade deficit. Japanese Prime Minister Shinzo Abe held talks with President Trump during the G7 summit in Canada on Monday. Abe stated that the two countries have not yet reached an agreement on a trade deal, but have agreed to continue negotiations at the ministerial level.