Texas Roadhouse earnings missed by $0.05, revenue topped estimates
Investing.com-- Japan’s trade balance unexpectedly shrank in April as increased U.S. trade tariffs and a strong yen weighed on exports, while Japanese imports were also slightly more resilient than expected.
Trade balance shrank to a deficit of 115.8 billion yen ($800 million), government data showed on Wednesday. The print was much weaker than expectations for a surplus of 227.1 billion yen, and shrank from the 559.4 billion yen surplus seen in the prior month.
The unexpected deficit came as export growth slowed sharply from the prior month, albeit as expected. Exports rose 2% year-on-year, with growth slowing sharply from the 4% rise seen in the prior month.
Japanese exports were pressured chiefly by softer U.S. demand, after President Donald Trump imposed higher import tariffs in April. Trump imposed a 10% universal tariff and a 25% tariff on foreign cars, the latter of which is a major pressure point for Japan.
Japan also faces a 24% additional levy in July, although trade talks between Japan and the U.S. are ongoing as Tokyo seeks to annul all U.S. tariffs. A third round of high-level talks is set to take place in Washington this week.
Strength in the yen and a sharp drawdown in the dollar also dented the value of Japan’s exports, as did softer demand in China, which was by far the worst hit by the U.S. tariffs.
Japanese imports shrank in April, but at a slower-than-expected pace as a bumper springtime hike in wages boosted private consumption.
Imports fell 2.2% y-o-y against expectations for a 4.5% drop, although they did reverse course from a 1.8% rise in the prior month.