Japan's exports and imports grow in September despite Trump's tariffs

In September, Japan saw a notable rise in exports driven largely by robust demand in Asia, which helped counterbalance the significant slump in exports to the U.S. triggered by Trump's recent tariffs. Even though exports to the U.S. fell sharply, particularly in the automotive sector, the overall export figures remained positive due to strong performance in other regional markets. Imports into Japan also saw a rise, suggesting a healthy demand within the country.

The new economic policies anticipated under Prime Minister Sanae Takaichi’s administration might enhance these trends. Takaichi’s pro-spending and pro-export policies, alongside a potentially weaker yen, could further boost Japanese exports by making them more competitive internationally. However, political instability and the limited majority in parliament could pose challenges to these policy implementations.

- **Export Growth:** Despite tariffs, Japan's export sector shows resilience, particularly to Asian markets.
- **Impact on Automakers:** Major decline in auto exports to the U.S. could pressure Japan's heavyweight automotive industry.
- **Political Factors:** New leadership under Takaichi could lead to expansive fiscal policies and a weaker yen, potentially benefiting exporters.
- **Market Sentiment:** Optimism in Tokyo's stock market suggests investor confidence in Takaichi's economic direction, despite potential political hurdles.