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Japan's Exports Plummet Amid U.S. Tariff Impact

7/17/2025

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Summary

Story summary

Japan's exports took a hit for the second month in a row, plummeting 0.5% in June, largely due to U.S. tariffs. Shipments to the U.S. saw a staggering 11.4% drop, especially in the automobile and steel sectors. This troubling trend sparks fears of a looming technical recession after a contraction earlier this year.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs, resulting in a 60% decline in international trade, a trend echoed in June 2023 when Japan's exports fell 0.5%, particularly to the U.S. This historical pattern of protectionist policies raises concerns about economic growth and the potential for a technical recession, reminiscent of the aftermath of the Great Depression.

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Story summary

Japan's exports took a hit for the second month in a row, plummeting 0.5% in June, largely due to U.S. tariffs. Shipments to the U.S. saw a staggering 11.4% drop, especially in the automobile and steel sectors. This troubling trend sparks fears of a looming technical recession after a contraction earlier this year.

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