Japan's exports rise 6% in November as shipments to the US bounce back

Core Insights - Japan's exports increased by 6% in November year-over-year, with a notable rise in shipments to the U.S. for the first time since March, attributed to reduced tariff uncertainties following a trade deal with the Trump administration [1][5] - Total imports rose by 1.3%, resulting in a trade surplus of 322.2 billion yen (approximately $2.1 billion) [1] Exports to the U.S. - Exports to the U.S. saw a nearly 9% increase, driven by shipments of cars, chemicals, and cameras, which offset declines in machinery and iron and steel [2] - The tariff deal with the Trump administration set the baseline import duty for most products at 15%, which boosted passenger car shipments by 8% in terms of vehicle numbers, although the value of these vehicles only increased by 1.5% [3] Imports from the U.S. - Imports from the U.S. rose by over 7%, contributing to a trade surplus of 739.8 billion yen ($4.7 billion), which is an 11% increase from the previous year [4] Exports to Other Regions - Exports to the European Union surged by about 20%, supported by increased demand for machinery, vehicles, and other manufactured goods [4] - However, exports to China fell by 2.4% due to weaker shipments of chemicals, machinery, and vehicles, influenced by rising tensions following comments from Prime Minister Sanae Takaichi regarding Taiwan [5] Future Outlook - Despite the recent recovery in trade with the U.S., higher tariffs are expected to continue impacting exports negatively, although forecasts suggest that Japan's exports may improve in the coming year [5] - Increased U.S. spending related to AI is anticipated to support Japan's exports [6]