1. Japan's exports slowed for two consecutive months amidst U.S. tariffs. 2. Exports grew 2%, marking the worst performance since last September. 3. Japan's real GDP contracted by 0.7% in Q1 2025 due to stagnant consumption. 4. Tariffs include a 25% levy on auto, steel, and aluminum exports. 5. Japanese automobiles constitute 28.3% of total U.S. imports in 2024.
Increased tariffs can strain U.S.-Japan trade relations and affect multinational companies. Historical example: 2018-2019 tariffs on steel and aluminum led to market volatility and sector impacts.
The slowdown in Japan's economy could affect S&P 500 valuations, especially in export-heavy sectors. Investors may react unwillingly to international trade news, impacting market behavior.
Current tariffs have an immediate effect on trade balances and corporate earnings. The direct impact on S&P 500 companies like Ford and GM could be seen quarterly.