Despite ongoing concerns about possible US protectionist trade policies that could impede future shipments, Japan’s exports grew more quickly than anticipated in October, driven by a rise in China’s demand for chip equipment.
Japanese companies are assessing the potential effects of new, high tariffs that US President-elect Donald Trump has pledged to impose, which might impede global trade.
According to data released by the Ministry of Finance on Wednesday, total exports increased 3.1% from the previous year, overcoming a 1.7% decline in September and above a median prediction of 2.2% in a Reuters poll.
According to the report, exports to China led the recovery with a 1.5% increase because of robust demand for chipmaking equipment, while exports to the US, Japan’s top export market, fell 6.2% as a result of weak vehicle shipments.
Global demand is still weak, according to economist Kazuma Kishikawa of the Daiwa Institute of Research. Since interest rate reduction will take time to begin to boost the economy, he said, “shipments headed for the United States in particular are likely to take months to recover.” In contrast to market expectations for a 0.3% decline, imports increased 0.4% in October compared to last year.
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