Tokyo, Jun 18 (AP) Japan's exports fell in May as shipments of autos to the US dropped nearly 25% from a year earlier due to higher tariffs imposed by President Donald Trump.

Exports fell 1.7% year-on-year, which was less than the decline analysts had forecast, the Finance Ministry reported Wednesday. Imports sank 7.7%, reflecting weakening domestic demand and worse than the 2% fall recorded in April.

The trade deficit in May was 637.6 billion yen, or $4.4 billion.

Japan has yet to reach a deal with Trump on resolving the tariffs issue, with Prime Minister Shigeru Ishiba saying after he met with the US president at the Group of Seven summit in Canada earlier this week that the two sides were unable to agree on some points.

Trump has imposed a 25% additional tariff on Japanese autos and a 24% tariff on other goods. He recently said the auto tariff may become even higher.

Ishiba has emphasised that Japan is an important ally in a key bilateral defense alliance with Washington and that he is pushing to protect his own country's national interests.

The auto industry is a pillar of Japan's economy, and Japan exports more than a million vehicles to the US a year. Tokyo has repeatedly stressed that automakers like Toyota and Honda produce cars in North America, contributing to the economy and creating jobs. (AP) NSA NSA

Tariffs on imports shrink exports and widen trade deficit as auto shipments to overseas markets sharply decline. Exports fell in May as automobile shipments to the United States dropped nearly 25% after higher US import tariffs; overall exports were down 1.7% year on year, imports fell 7.7%, and the trade deficit was 637.6 billion yen. The US has applied an additional 25% tariff on autos and a 24% tariff on other goods, and negotiations to resolve the tariffs remained unresolved following a leaders' summit.