ZCZC
BCN-08
JAPAN-ECONOMY-TRADE
Japan’s trade surplus with US slumps in July
TOKYO, Aug 16, 2018 (BSS/AFP) – Japan’s politically sensitive trade
surplus with the United States shrank sharply in July, according to official
data published Thursday, as the two allies continue to cross swords over US
trade policy.
The surplus with the US shrank 22.1 percent with reduced shipments of motor
vehicles and microchip-making equipment dragging down the figure.
Despite a close political and economic relationship, Japan was not spared
from President Donald Trump’s tariffs on steel and aluminium products and
Tokyo has warned it could retaliate at the World Trade Organization.
Top officials from both sides met in Washington last week but no
breakthrough was announced after the talks.
Overall, Japan logged a trade deficit of 231.2 billion yen ($2 billion)
last month, compared to a surplus of 406.6 billion yen recorded in the same
month last year.
With the yen strengthening against the dollar, exports registered their
slowest growth in four months, rising 3.9 percent year-on-year. Meanwhile,
imports jumped 14.6 percent.
Japan’s deficit with its biggest trading partner China shrank 17.8 percent
as exports rose 11.9 percent, a double-digit rise for the fifth consecutive
month.
BSS/AFP/MR/ 1125 hrs