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Japan's exports in May decreased for the first time in 8 months, highlighting the impact of President Trump's tariff policies. Exports, which are a main driver of Japan's economic growth, dropped by 1.7% compared to the same period last year. Data from the Japanese Ministry of Finance on Wednesday showed that this decline was a significant reversal from the 2.0% increase in April, due to reduced shipments of cars and steel. A survey by data provider FactSet showed that economists had previously expected a slight increase of 0.1% in May exports. The data also indicated a 11.1% drop in exports to the US, driven by weak demand for cars, car parts, and chip manufacturing equipment. Japan's trade surplus with the US shrank by 4.7% compared to last year, marking the first decline in five months. It is still uncertain whether Japan will succeed in negotiating an exemption from the US tariffs, which are aimed at reducing the trade imbalance. Prime Minister Shinzo Abe met with President Trump during the G7 summit in Canada on Monday, where they discussed trade issues. Abe stated that the two countries have not yet reached a trade agreement but have agreed to continue negotiations at the ministerial level.