Japan's exports fell by 2.6% year-on-year in July 2025, marking the largest monthly decline since February 2021, according to government data. The total export value dropped to ¥9.36 trillion (approximately US$63.37 billion). This contraction was driven primarily by a 10.1% decrease in exports to the United States, Japan's largest export market. The decline coincides with intensified US tariffs, including a 25 percentage point increase on Japan's top export to the US, motor vehicles. This development has raised concerns about the outlook for Japan's export-reliant economy. Meanwhile, Thailand's car production fell by 11.39% year-on-year in July after an 11.98% increase in June, although local vehicle sales rose. Thai exports grew by 11% year-on-year in July, exceeding expectations, but the growth is expected to slow due to US tariffs. The broader trade tensions have also contributed to economic challenges in China's key industrial provinces.