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Japan racks up trade deficit amid threat from Trump's tariffs

News

Japan racks up trade deficit amid threat from Trump's tariffs
News

News

Japan racks up trade deficit amid threat from Trump's tariffs

2025-07-17 11:59 Last Updated At:12:21

TOKYO (AP) — Japan sank into a trade deficit of 2.2 trillion yen ($15 billion) for the first six month of this year, according to government data released Thursday, as exports were hit by President Donald Trump’s tariffs.

In June, Japan's exports slipped 0.5% from a year earlier after its shipments of vehicles and other products were slapped with a 25% tariff. Trump has postponed implementing that higher import duty until Aug. 1, to allow time for negotiations but so far no deal has been reached.

Exports in June totaled nearly 9.2 trillion yen ($62 billion), in the second straight month of declines. Imports in June rose 0.2% to 9 trillion yen ($61 billion), the Finance Ministry said. That left a trade surplus of 153 billion yen (just over $1 billion). The trade deficit in May was 637.6 billion yen, or $4.4 billion.

Japan's exports to the United States fell 11% in June, with auto exports plunging 25%. Shipments to China decreased by nearly 5%. Exports to Mexico, a major auto assembly hub for North America for Japanese automakers, fell nearly 20%.

In the first half of the year, Japan's exports totaled 53.4 trillion yen ($360 billion), up 3.6%, while imports rose 1.3% to 55.6 trillion yen ($375 billion).

Japan and the U.S. have been holding trade talks, with Japanese officials stressing that Japan is a key U.S. ally.

Trump has focused on rice, a sector traditionally protected from foreign competition for the sake of Japan's food security. Japan imports more than 300,000 tons of rice a year from the U.S., according to various data, although some of that is used for animal feed.

Japan will hold an election for the Upper House of Parliament on Sunday. Given falling public support for Prime Minister Shigeru Ishiba's administration, the conservative and pro-business ruling Liberal Democratic Party could lose its majority unless it gains another coalition partner.

Japan’s economy contracted at an annual rate of 0.7% in the first quarter of this year compared to the previous quarter, partly due to slowing exports.

Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

FILE - A car, center, is moved to another location of the area where export vehicles are parked at Daikoku Pier in Yokohama, near Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae, File)

FILE - A car, center, is moved to another location of the area where export vehicles are parked at Daikoku Pier in Yokohama, near Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae, File)

DENVER (AP) — A Frontier Airlines plane hit and killed a pedestrian on the runway of the Denver International Airport during takeoff, airport authorities said, sparking an engine fire and forcing passengers to evacuate.

The plane, on route from Denver to Los Angeles International Airport, “reported striking a pedestrian during takeoff at DEN at approximately 11:19 p.m. on Friday," the airport's official X account wrote.

A spokesperson for the airport said the pedestrian, who jumped a perimeter fence, has died. They said the unidentified person was hit two minutes after entering the airport. The person is not believed to be an airport employee.

“We're stopping on the runway,” the pilot tells the control tower according to the site ATC.com. “We just hit somebody. We have an engine fire.”

The pilot tells the air traffic controller they have “231 souls” on board and that an “individual was walking across the runway.”

The air traffic controller responds that they are “rolling the trucks now" before the pilot tells the tower they “have smoke in the aircraft. We are going to evacuate on the runway.”

Frontier Airlines said in a statement flight 4345 was the one involved in the collision and that “smoke was reported in the cabin and the pilots aborted takeoff.” It was not clear whether the smoke was linked to the crash with the pedestrian.

“The Airbus A321 was carrying 224 passengers and seven crew members,” the airline said. “We are investigating this incident and gathering more information in coordination with the airport and other safety authorities.”

Passengers were then evacuated via slides and the emergency crew bused them to the terminal. The airport spokesperson said 12 passengers suffered minor injuries and five were taken to local hospitals.

Denver Airport said the National Transportation Safety Board had been notified and that runway 17L, where the incident took place, will remain closed while an investigation is conducted. It is expected to open later today.

The pedestrian death came a day after a Delta Air Lines employee was killed while on the job at the Orlando International Airport. In a statement, the airline said the employee was killed Thursday night without providing details of the incident nor the name of the employee.

“We are focused on extending our full support to family and taking care of our Orlando team during this difficult time,” the airline said. "We are working with local authorities as a full investigation gets underway to determine what occurred.”

FILE - A Frontier Airlines jetliner taxis down a runway for take off from Denver International airport on Nov. 25, 2025, in Denver. (AP Photo/David Zalubowski, File)

FILE - A Frontier Airlines jetliner taxis down a runway for take off from Denver International airport on Nov. 25, 2025, in Denver. (AP Photo/David Zalubowski, File)

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