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<h1>US Tariffs Trigger Sharp Decline in Japanese Exports, Widening Trade Deficit as Automotive Sector Struggles</h1> Japan experienced a trade deficit in May due to declining exports, particularly automotive shipments to the US, following tariffs imposed by the US president. Exports dropped 1.7% year-on-year, while imports fell 7.7%. The trade deficit reached 637.6 billion yen. Bilateral negotiations between the two countries remain unresolved, with tensions surrounding automotive trade and tariff rates.