Japan’s trade balance dropped from -¥118.4 billion in July to -¥242.5 billion in August, a smaller deficit than the forecast of -¥513.6 billion.

• Exports fell -10.0% MoM and -0.1% YoY (vs -1.9% YoY expected), an improvement over the -2.6% YoY decline previously.
• Imports dropped -8.5% MoM and -5.2% YoY (vs 4.2% YoY expected) as inflows were lower than estimates and below a year ago.
• Exports to the US crashed -19.8% MoM and were down -13.8% YoY as tariff policy restricted outflows of Japanese goods to the US.
• Imports from the US fell -7.2% MoM but were up 11.6% YoY, driving the Japanese trade surplus with the US down -50.5% YoY.