Japan records trade deficit as exports suffer from Trump's tariffs
TOKYO (AP) — Japan's exports fell in May as shipments of autos to the U.S. dropped nearly 25% from a year earlier due to higher tariffs imposed by President Donald Trump.
Exports fell 1.7% year-on-year, which was less than the decline analysts had forecast, the Finance Ministry reported Wednesday. Imports sank 7.7%, reflecting weakening domestic demand and worse than the 2% fall recorded in April.
The trade deficit in May was 637.6 billion yen, or $4.4 billion.
Japan has yet to reach a deal with Trump on resolving the tariffs issue, with Prime Minister Shigeru Ishiba saying after he met with the U.S. president at the Group of Seven summit in Canada earlier this week that the two sides were unable to agree on some points.
Trump has imposed a 25% additional tariff on Japanese autos and a 24% tariff on other goods. He recently said the auto tariff may become even higher.
Ishiba has emphasized that Japan is an important ally in a key bilateral defense alliance with Washington and that he is pushing to protect his own country's national interests.
The auto industry is a pillar of Japan's economy, and Japan exports more than a million vehicles to the U.S. a year. Tokyo has repeatedly stressed that automakers like Toyota and Honda produce cars in North America, contributing to the economy and creating jobs.
Monday Mornings
The latest local business news and a lookahead to the coming week.
___
Yuri Kageyama is on Threads https://www.threads.com/@yurikageyama
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
31 minutes ago
- Toronto Star
John Tory's eyeing a return to city hall + Internal data shows wide gaps in pregnancy rates at fertility clinics
Good morning. This is the Wednesday, June 18 edition of First Up, the Star's daily morning digest. Sign up to get it earlier each day, in your inbox. It looks like we're in for an extra-hot start to summer in Toronto. Here's what you need to know. And here's the latest on John Tory's potential return to city hall, what data reveals about Ontario fertility clinics, and why a Toronto man is stranded in Iran. ARTICLE CONTINUES BELOW DON'T MISS John Tory is weighing a city hall comeback Insiders say Tory is eyeing a 2026 mayoral run. Here's what we know. Edward Keenan: Could we see Olivia Chow vs. John Tory in next year's Toronto mayoral race? Here's what it might look like Mayor John Tory steps down from office after admitting he had relationship with staffer Internal data reveals stark contrasts in pregnancy rates at fertility clinics Here's what the data — which patients don't have access to — reveals about clinics' success rates. Disturbing errors at Ontario fertility clinics destroy couples' baby dreams years after province abandoned oversight plans This Toronto man is stranded in Iran Hossein Khodabakhsh travelled to Tehran to visit his sick mother. Now he's stuck. The Latest: Israel strikes Tehran for a sixth day as Iranian casualties rise WHAT ELSE French President Emmanuel Macron, European Commission President Ursula Von der Leyen, NATO Secretary General Mark Rutte, Japanese Prime Minister Shigeru Ishiba, German Chancellor Friedrich Merz, US Secretary of Treasury Scott Bessent, Canadian Prime Minister Mark Carney, and Ukrainian President Volodymyr Zelenskyy during the Group of Seven (G7) Summit at the Pomeroy Kananaskis Mountain Lodge in Kananaskis, Alberta, Tuesday. LUDOVIC MARIN AFP via Getty Images World leaders were unable to convince Donald Trump to sign a joint G7 declaration of support for Ukraine. Meanwhile, Russian President Vladimir Putin is set to take questions from international journalists. Donald Trump said Canada will get a 'much better deal' if it becomes the 51st American state. David Olive: National unity is at stake in the war of wills between Carney's energy dreams and Smith's pipeline populism. This formerly homeless man is teaching kids how to heal from trauma — with improv. The cop who assaulted Brampton teen Chadd Facey is set to be sentenced today. A gang of 'stupid criminals' allegedly tried to steal a car from Doug Ford's driveway. Meanwhile, Ford voiced support for a man who allegedly shot a gun to ward off attempted carjackers. Eglinton Crosstown LRT train operations have been transferred to TTC. Here's what comes next. A real estate investment firm bought an aging, 'luxury' apartment building in midtown. Here's what happened next. Wine sales at the LCBO fell as U.S. imports to Canada plunged 94 per cent. Shellene Drakes-Tull: Here's why that crass sticker on your bumper can snowball into something darker. POV The Blue Jays were maligned for sending Lourdes Gurriel Jr. and Gabriel Moreno to the Diamondbacks. Two years later, both teams are happy with the trade. CLOSE UP Members of the Florida Panthers celebrate their victory over the Edmonton Oilers with a final score of 5-1 at Amerant Bank Arena Tuesday. Mike Carlson Getty Images SUNRISE: The Florida Panthers celebrate their second straight Stanley Cup victory. The Panthers beat the Edmonton Oilers 5-1 in Game Six of the Stanley Cup Final last night. Here's Bruce Arthur's take on another loss for a Canadian team. Thank you for reading. You can reach me and the First Up team at firstup@ I will see you back here tomorrow. Sign up here to get this newsletter in your inbox.
Winnipeg Free Press
39 minutes ago
- Winnipeg Free Press
Fans of Irish band Kneecap surround a London court as a band member faces a terror-related charge
LONDON (AP) — Fans of the Irish-language hip-hop group Kneecap mobbed sidewalks outside a London court Wednesday as a member of the trio faced a terror-related charge in what he says is a politically motivated effort to silence the band's support for Palestinians before its appearance at the Glastonbury Festival. Rapper Mo Chara, whose real name is Liam Óg Ó hAnnaidh, was released on unconditional bail after the hearing at Westminster Magistrates' Court. His next court appearance is scheduled for Aug. 20. Chara is charged with one count of supporting a banned terrorist organization after he allegedly waved a Hezbollah flag during a Nov. 21 concert in north London. The case was filed after counterterrorism police were alerted to video of the incident posted online, London's Metropolitan Police Service said. Prosecutor Michael Bisgrove told the court that support for the Palestinians and criticism of Israel were not the reasons for the charge filed against Chara. 'He's well within his rights to voice his opinions and solidarity, as is anybody else,'' Bisgrove said. 'The allegation in this case is a wholly different thing and deals with a video recording showing that, in November of last year, Mr. O hAnnaidh wore and displayed the flag of Hezbollah, a proscribed terrorist organization, while saying 'up Hamas, up Hezbollah.''' Kneecap, which raps about drugs, working-class life and the reunification of Ireland, has supported the Palestinian cause throughout the war in Gaza. The band has been the center of controversy in Britain since last year, when the previous government sought to block an arts grant for the band, citing its anti-British politics. That decision was overturned after the Labour Party won last year's parliamentary election and Prime Minister Keir Starmer took office. The trio is scheduled to perform at Glastonbury on Saturday, alongside performers including Neil Young and Olivia Rodrigo. The internationally watched music festival is a five-day event that attracts about 200,000 people to a farm outside the small town in western England every summer. As they entered the courthouse, the members of Kneecap, all of whom hail from Northern Ireland, gave the thumbs up sign to hundreds of supporters who had gathered outside waving signs reading: 'Free Mo Chara' and 'Defend Kneecap.' Weekly A weekly look at what's happening in Winnipeg's arts and entertainment scene. Before the hearing, the band posted billboards around London bearing the slogan 'More Blacks, More Dogs, More Irish, Mo Chara.' The message echoes the signs landlords placed in the windows of some London boarding houses in the 1950s, stating 'No Blacks, No Dogs, No Irish.' 'British courts have long charged people from the North of Ireland with 'terrorism' for crimes never committed,' Kneecap said in a statement posted on social media. 'We will fight them. We will win.'
Global News
43 minutes ago
- Global News
U.S. Fed likely to hold interest rate steady, but are cuts still coming?
The inflation-fighters at the Federal Reserve are expected to keep their key interest rate unchanged Wednesday for the fourth straight time. That's likely to shift attention to how many interest rate cuts they forecast for this year. It's widely expected that the 19 Fed officials that participate in the central bank's interest-rate decisions will project two rate cuts for this year, as they did in December and March. But some economists expect that one or both of those cuts could be pushed back to 2026. The Fed will almost certainly keep the short-term rate it controls at about 4.3 per cent, economists say, where it has stood since the central bank last cut rates in December. Since then, it has stayed on the sidelines while it evaluates the impact of President Donald Trump's tariffs and other policy changes on the economy and prices. Story continues below advertisement Inflation has been cooling since January, and many economists say that without the higher import taxes, the Fed would likely be cutting its rate further. According to the Fed's preferred measure, inflation dropped to just 2.1 per cent in April, the lowest since last September. Core inflation — which exclude the volatile food and energy categories — was 2.5 per cent. Those figures suggest inflation is largely coming under control, for now. Yet the Fed's short-term interest rate remains at an elevated level intended to slow growth and inflation. Some economists argue that with inflation cooling, the Fed could resume its rate reductions. 1:50 Bank of Canada holds key interest rate steady at 2.75% When the Fed reduces its rate, it often — though not always — leads to lower costs for consumer and business borrowing, including for mortgages, auto loans, and credit cards. Yet financial markets also influence the level of longer-term rates and can keep them elevated even if the Fed reduces the shorter-term rate it controls. Story continues below advertisement But Fed officials have said they want to see whether Trump's tariffs boost inflation and for how long. Economists generally believe a tariff hike should at least lead to a one-time increase in prices, as companies seek to offset the cost of higher duties. Many Fed officials, however, are worried that the tariffs could lead to more sustained inflation. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'While theory might suggest that (the Fed) should look through a one-time increase in prices, I would be uncomfortable staking the Fed's reputation and credibility on theory,' Jeffrey Schmid, president of the Fed's Kansas City branch and a voting member of the Fed's interest-rate setting committee, said earlier this month. The Trump White House has sharply ramped up pressure on Powell to reduce borrowing costs, with Trump himself calling the Fed chair a 'numbskull' last week for not cutting. Other officials, including Vice President JD Vance and Commerce Secretary Howard Lutnick, are also calling for a rate reduction. Pushing the Fed to cut rates simply to save the government on its interest payments typically raises alarms among economists, because it would threaten the Fed's congressional mandate to focus on stable prices and maximum employment. One of Trump's complaints is that the Fed isn't cutting rates even as other central banks around the world have reduced their borrowing costs, including in Europe, Canada, and the U.K. On Tuesday, the Bank of Japan kept its key short-term rate unchanged at 0.5%, after actually raising it recently. Story continues below advertisement But the European Central Bank, Bank of Canada, and Bank of England have reduced their rates this year in part because U.S. tariffs are weakening their economies. So far the U.S. economy is mostly solid, with the unemployment rate low. The Bank of England has cut its rate twice this year but is expected to keep it unchanged at 4.25% when it meets Thursday.
