Japan’s exports contracted in August, but the drop was less substantial than predicted. A rebound in shipments to Asia helped cushion the blow, even as US-bound exports continued to suffer under ongoing tariffs.

Japan’s overseas shipments fell 2.6 % in July, the worst reading since 2021 and a bigger slide than analysts foresaw. The drop marked a third straight monthly decline and left the nation with a ¥117.5 billion trade deficit amid intensifying U.S. tariff pressure.