Japan's exports declined for the second consecutive month in June 2025, falling 0.5% year-on-year and missing expectations of a 0.5% increase. The total export value reached 8.976 trillion yen. Exports to the United States dropped sharply by 11.4% year-on-year, marking the third straight monthly decline, while shipments to China decreased by approximately 4.7%. This downturn was largely driven by significant reductions in automobile and steel shipments, which fell by 27% and 29%, respectively. The ongoing U.S. tariff campaign, including a new 25% tariff on certain goods, has been cited as a major factor weighing on Japan's trade performance. The lack of progress on a U.S.-Japan trade deal has heightened concerns about a potential recession in Japan, especially given that Japan's GDP contracted by 0.7% in the first quarter of 2025. The export slump is seen as complicating the Bank of Japan's monetary policy decisions and raising fears of a broader economic slowdown.