Japan’s exports to the U.S. rebounded for the first time in eight months in November, in a sign of easing pain from U.S. tariffs, government data showed on Wednesday, bolstering the case for the central bank to continue raising interest rates. “Automobile exports seem to be recovering faster than expected, as the reduced U.S. auto tariff rate gave Japanese automakers some price competitiveness, also helped by a weaker yen,” Daiwa Institute of Research economist Koki Akimoto said.
“Looking ahead, however, signs of weakness in the U.S. labour market could weigh on auto demand, meaning the latest momentum in Japan’s car exports may not last,” Akimoto added. Japan’s total exports by value rose 6.1% year-on-year last month, rising for the third consecutive month after a 3.6% gain in October. It outpaced a median market forecast for a 4.8% increase. Exports to the United States rose 8.8% in November from a year earlier, with shipments of automobiles rising 1.5% and those of pharmaceuticals more than doubling.
Exports to Asia and to Europe rose 4.5% and 19.6%, respectively, while those to China were down 2.4%, the data showed. Imports grew 1.3% last month year-on-year, compared with market forecasts for a 2.5% increase. As a result, Japan ran a trade surplus of 322.2 billion yen ($2.08 billion) in November, much larger than the forecast of 71.2 billion yen. It was the first trade surplus in five months, with the trade balance with the U.S. turning positive for the first time in seven months.
