• Japan's overall exports increased by 2% in April but saw a decline in shipments to the US.
• Exports to the US dropped by 1.8% to 2% due to the impact of US tariffs.
• The trade deficit reached 115.8 billion yen, marking the first deficit in three months.
• Vehicle exports to the US fell nearly 6% as tariffs and a stronger yen affected pricing.
• Japan's economic revitalization minister will meet US officials for further tariff negotiations.

Japan's exports rose by 2% in April from a year earlier, matching market forecasts, but shipments to the United States, its largest trading partner, fell by 1.8% to 2%. This decline highlights the negative impact of President Donald Trump's tariffs on Japan's economy, particularly affecting the automobile sector, which is crucial for exports, according to channelnewsasia, Reuters, and indiatimes.

The overall trade deficit reached 115.8 billion yen (approximately $804 million) in April, marking the first deficit in three months, in contrast to a surplus forecast by analysts of 227.1 billion yen. This deficit reflects a significant drop in imports from the U.S., which fell by more than 11%. Imports overall declined by 2.2%, according to data from the Ministry of Finance, cited by indiatimes and Reuters.

In April, vehicle exports to the U.S. decreased by nearly 6%, significantly impacting Japan's economy, which had already suffered a contraction of 0.7% in the last quarter. Analysts suggest that the high tariffs imposed by the U.S., particularly a 25% tariff on car imports, are exacerbating the situation. Minister for Economic Revitalization Ryosei Akazawa is expected to hold critical discussions in Washington to negotiate tariff reductions, according to channelnewsasia, indiatimes, and Reuters.