Exports Plunge 25.7% From a Year Ago

JapanToday reports Japan's Current Account Surplus Shrinks to 5-Year Low.

Japan posted its smallest current account surplus in more than five years in June, Ministry of Finance data showed on Tuesday, mainly due to a slump in exports, highlighting the heavy hit to external demand from the coronavirus pandemic.

Details 

  • The current account surplus was 167.5 billion yen ($1.58 billion), the smallest monthly surplus since January 2015.
  • Exports plunged 25.7% in June from a year ago, hit hard by falling shipments of cars and car parts to the United States.
  • Imports shed an annual 14.4%, following a 27.7% annual fall in May.
  • Japan's e trade deficit in June widened to 157.7 billion yen.
  • A 99.9% drop in foreign tourists due to immigration restrictions imposed over the health crisis sent the travel account to a 157.7 billion yen deficit in June.

Japanese Exports

Japanese Exports 2020-06

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There is little reason to expect a sudden sharp reversal.

US Trade in Goods With Japan

US Trade in Goods With Japan 2020 June

The above chart from the Census Department.

As I have commented before, Trump's best chance to reduce trade deficits with the world was not tariffs but rather to have one hell of a recession.

Congratulations?

Mish