Japan’s July exports clock steepest plunge in over four years, dropping by a more than expected 2.6% – CNBC

Key Takeaways:

• Exports fell 2.6 % in July, exceeding forecasts.
• The decline is Japan’s steepest in more than four years.
• July’s trade balance swung to a ¥117.5 billion deficit.
• Overseas sales have now fallen for three consecutive months.
• Businesses cite escalating U.S. tariffs as a key drag.

July’s Sudden Slide
Japan’s exporters delivered their worst performance in over four years last month, new figures show. Shipments abroad dropped 2.6 %, a sharper-than-expected contraction that underscored the toll of a shifting global trade landscape.

More Than a Blip
Economists had braced for weakness, yet the scale of July’s fall surprised many. The 2.6 % slide is “the steepest plunge in over four years,” according to the data cited in multiple financial outlets carried by Google News.

A Trade Gap Re-Emerges
The slump turned the nation’s external ledger red. Japan posted a trade deficit of ¥117.5 billion for the month, reversing earlier hopes that a rebound in shipments might stabilize the balance.

Table 1: Headline Numbers for July
Exports Change………………-2.6 %
Trade Balance………………-¥117.5 billion
Monthly Streak………………3rd straight decline

Tariff Headwinds
Corporate executives point to “intensifying U.S. tariff impacts” as a central culprit. With duties ratcheting higher on a range of products, Japanese manufacturers are struggling to keep prices competitive in their largest overseas market.

A Trend, Not an Anomaly
July marks the third consecutive month in which export volumes have fallen, deepening concern that the weakness could spill into broader economic indicators. Analysts warn that “tariff pain deepens” each month the dispute drags on.

Looking Ahead
Whether Japan can arrest the slide may depend on a thaw in trade tensions and a pickup in global demand. For now, July’s numbers stand as a stark reminder of how quickly external headwinds can bruise one of the world’s most trade-dependent economies.