Japan has reported its exports fell in May as shipments of autos to the U.S. dropped nearly 25% from a year earlier due to higher tariffs imposed by President Donald Trump.

Japan's exports fell in May for the first time in eight months as big automakers like Toyota were hit by sweeping U.S. tariffs, and the failure of Tokyo to clinch a trade deal this week will likely pile pressure on a fragile economy.

Japan's trade deficit decreased significantly to JPY 637.61 billion in May 2025 from JPY 1,225.17 billion in the same month last year, beating market expectations of a JPY 893 billion gap, as exports fell in May for the first time in eight months amid US tariff pressure,