Japanese exports have dropped for the second consecutive month due to tariff issues.

Affected by concerns over the tariffs imposed by the United States, Japanese exports decreased for the second consecutive month in June. Data released by the Japanese Ministry of Finance on Thursday showed that exports in June fell by 0.5% year-on-year, following a 1.7% decline in May. Economists had previously predicted a 0.5% growth in exports, according to data from LSEG. Exports to the United States fell by 11.4% year-on-year in June due to weak exports of cars, car parts, and pharmaceuticals. In contrast, exports to the US in May had dropped by 11.0%, marking the third consecutive month of decline in exports to the US. President Trump has expressed dissatisfaction with Japan's insufficient purchases of American goods and has threatened to impose a 25% retaliatory tariff starting from August 1st. Japanese officials have visited Washington and held numerous talks with the Trump administration on a trade agreement, but have not yet reached a deal.