Japan posts trade deficit first time in 2 months

21 August


Japan has posted a trade deficit for the first time in two months, as exports to China fell amid its trade dispute with the US.


Officials at Japan's Finance Ministry say exports in July dropped 1.6 percent year on year to 6.64 trillion yen, or about 62.4 billion dollars. The figure was down for the eighth month in a row.


Imports fell 1.2 percent in yen terms to about 64.8 billion dollars.


That left the trade balance in the red at slightly over 2.3 billion dollars.


Exports to China were down 9.3 percent from the same month last year.


Shipments bound for South Korea fell 6.9 percent.


Japan tightened export controls for some high-tech materials to South Korea in early July. But the ministry officials say the items account for only a small portion of overall exports.


They say the major factor for the drop was sluggish sales of auto parts and machinery, including equipment used in the manufacture of semiconductors.


NHK