Tokyo (AP) Due to high import expenses caused by a weakening yen and rising energy prices, Japan recorded a trade deficit in October for the fourth consecutive month.
The Finance Ministry said Wednesday that last month’s trade imbalance, which is calculated by subtracting a country’s exports from its imports, came to 461 billion yen ($3 billion).
As shipments of equipment for the production of semiconductors increased, Japan’s exports in October managed to rebound from a recent slump, increasing 3.1% from the same month the previous year.
However, despite a 0.4% increase from the year before, imports still outpaced exports.
Donald Trump’s reelection as U.S. president has created a significant trade uncertainty. Concerns about rising tariffs are quite real.
Even while these corporations have shifted their production and investment overseas, exports remain a major source of development for Japan, the home of Toyota Motor Corp.
Shigeru Ishiba, the new prime minister, has been busy meeting with the leaders of South America, Europe, and Asia in order to establish trade, economic, and security links. Ishiba just attended the Group of 20 conference in Brazil, but he has not yet met Trump.
Another concern for Japan is a declining value of the currency, which usually accompanies trailing growth. A year ago, the U.S. dollar was about 140 Japanese yen, but it has recently increased to around 155 yen.
While declining global demand reduces exports, inflation and rising energy prices are driving up import costs.
However, the current decline in exports is linked to disruptions in Japanese auto production, while the decline in demand abroad is thought to be partially caused by transient disruptions like a typhoon.
Exports to the remainder of Asia, including Singapore and Hong Kong, increased by region, although exports to the United States decreased little.
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