🚀 Japanese exports fall due to US tariffs

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Japan’s exports fell 1.7% in May—the sharpest drop in eight months—as shipments to the U.S. plunged 11.1%, highlighting the growing toll of strained trade relations under President Trump’s second term. Exports of Japanese motor vehicles to the U.S. fell nearly 25%, battered by a 25% tariff on autos and steel, and with a new 24% “reciprocal” tariff on all other exports set to take effect July 9. The broader decline in exports, especially to major markets like China and the U.S., coupled with a 7.7% drop in imports, paints a grim picture for Japan’s economy, which already contracted 0.2% in Q1. The Bank of Japan has warned of “extremely uncertain” trade conditions and a potential slowdown in corporate profits, as ongoing U.S.-Japan negotiations have stalled after six inconclusive rounds. Despite efforts to diversify trade through pacts like the CPTPP and RCEP, Japan’s exposure to U.S. demand—especially in autos—remains a key vulnerability as geopolitical and tariff risks rise.

2. New York City Comptroller and Democratic mayoral candidate Brad Lander was released Tuesday after being detained by ICE agents outside immigration court in Manhattan, sparking a political firestorm just days before the city’s Democratic primary. According to Lander’s wife, he was arrested while escorting a defendant out of the building—an act caught on video showing Lander calmly requesting a judicial warrant before being handcuffed by masked officers. ICE claimed he had assaulted law enforcement and impeded a federal officer, though no charges were filed by day’s end. Governor Kathy Hochul blasted the arrest as “total bulls---” and “federal overreach,” while Attorney General Letitia James called it a “shocking abuse of power.” The arrest follows another tense incident in which Senator Alex Padilla was forcibly removed from a DHS press conference, deepening concerns that federal agencies are targeting Democratic officials. With Lander a leading voice on immigrant rights, critics say the incident represents a chilling escalation of political intimidation under Trump’s second administration.

3. President Donald Trump is weighing a U.S. military strike on Iran as tensions escalate following five days of missile fire between Iran and Israel, raising fears of broader conflict. After meeting with national security advisors, Trump warned Iran’s Supreme Leader Ayatollah Ali Khamenei to “surrender unconditionally,” calling him an “easy target” while asserting U.S. control of Iranian airspace. Though Trump said the U.S. would not assassinate Khamenei “for now,” reports suggest he is considering aiding Israel in targeting Iran’s underground uranium facility with America’s largest bunker-buster bomb. The Pentagon is already deploying more warships to the region, signaling readiness for direct involvement. Markets reacted with anxiety: the Dow dropped nearly 300 points and oil prices jumped over 4%, reflecting investor fears of supply disruption and geopolitical spillover.

4. Headlines

   1. TikTok’s U.S. sale deadline will be extended again by President Trump.

   2. Amazon expects that AI will allow it to shrink its workforce.

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