Export Japan in July decreased by 2.6%, the most steep immersion in four years

Japan’s exports plunged at 2.6% a year in July, their most steep fall since February 2021, when deliveries to the two largest markets decreased.

The drop was more sharp than 2.1% of the reduction, which expected economists interviewed by Reuters, and compared to the fall of 0.5%, noticed in June.

Imports in the fourth largest economy in the world have driven 7.5% compared to the 10.4% drop, which is expected by the Reuters survey.

Exports to the United States also continued to fall, falling by 10.1% in July and slightly softer than 11.4% in June. The US is the largest market for Japanese exports.

Shipment to mainland China – the second largest export market of Japan – decreased by 3.5% compared to the same month last year, but deliveries to Hong Kong made 17.7%.

A Nikkei 225 After the release fell by 0.9% he The poorly weakened trading at 147.79.

Reading Trading come after Japan reported its GDP figures in the second quarter, In which the country has won expectations because pure exports came to growth.

In the second quarter, Japan’s economy increased by 0.3% in a quarter and 1.2% in the second quarter, as exports remained elastic, even when imports decreased.

Hirofumi Suzuki, FX Chief Strategist at Sumitomo Mitsui Banking Corporation, reported CNBC after the release of GDP that while exports were changing, in April to June was a higher level.

This may be due to the increase in catch -up after mining from the crash in the manufacturer of car parts in March, Suzuki said.

While Suzuki did not call the company, Reuters reported that there Blast on March 7 At the Central Japan plant, which supplies auto parts for the world’s largest, Toyota Motor.

Car tariffs were reduced from 25% to 15% under Japan’s trade transaction. Automobile is one of Japan’s largest exports and is its largest exports to the US in 2024.

Automobile exports – which includes cars, buses and trucks – in the US plunged 28.4% a year in July, a longer drop in comparison with a decrease in 26.7% in June.

Japan reached an agreement with Washington on July 22 that saw the so -called “Mutual tariff” decreased to 15% Of 25% threaten US President Donald Trump earlier this month.

While the consequences of 15% of tariffs will not appear before the August data, analysts warn their influence on the Japanese economy.

The senior economist Massato Kike at the Sumpo Institute plus said that on August 14, there is a possibility that Japan could enter the recession, depending on the value of tariffs.