Data showed that total exports in February rose 11.4% year-on-year, less than the median market forecast, up 12.1% and 7.2% in January.
The threat of Trump’s aggressive tariffs has caused some Japanese companies (such as Sony Group) to stock inventory in the United States, a step that could temporarily increase overall exports.
Data showed exports to the United States rose 10.5% in February, while exports from China rose 14.1%.
Last month, transportation to China may be affected by more working days, and this year’s Lunar New Year holiday ended.
Imports in February fell 0.7% from a year ago compared to market forecast growth of 0.1%. As a result, Japan’s surplus was 584.5 billion yen (US$3.91 billion), while the forecast surplus was 722.8 billion yen. Trump had no exemptions or exceptions last week, raising tariffs on steel and aluminum imports to 25%. He also promised to start tariffs on major exports to Japan from April 2.
The United States is its largest export destination, accounting for 21 trillion yen ($140.56 billion) of goods, with its cars accounting for about 28% of them.
Japanese companies are also growing concern that Trump’s protectionist policies could trigger a broader economic slowdown and hit the country’s export base economy, while hoping strong wage growth will help maintain domestic consumption and economic recovery.
Bank of Japan is expected to stabilize interest rates at 0.5% at a two-day policy meeting ending Wednesday and discuss the risks of the U.S. trade war escalating into an export-dependent economy.
