By Makiko Yamazaki
TOKYO (Reuters) – Japan’s exports rose for a fifth straight month in February, data showed on Wednesday, possibly boosted in part by some stockpiling amid growing concerns over U.S. President Donald Trump’s aggressive tariff policies.
Total exports rose 11.4% year-on-year in February, data showed, less than a median market forecast for a 12.1% increase and following a 7.2% rise in January.
The threat of Trump’s aggressive tariffs has led some Japanese companies such as Sony Group to stockpile inventory in the United States, a step that could have temporarily boosted overall export volumes.
Exports to the U.S. rose 10.5% in February from a year earlier, while those to China were up 14.1%, the data showed.
Shipments to China may have been affected by more working days last month, with the Lunar New Year holiday ending earlier than usual this year.
Imports dropped 0.7% in February from a year earlier, compared with market forecasts for a 0.1% increase.
As a result, Japan ran a trade a surplus of 584.5 billion yen ($3.91 billion), compared with the forecast of a surplus of 722.8 billion yen.
Trump raised tariffs on imports of steel and aluminium to a 25%, effective last week, without exemptions or exceptions. He has also promised tariffs beginning April 2 on autos, Japan’s key exports.
The United States is its biggest export destination, accounting for 21 trillion yen ($140.56 billion) worth of goods with automobiles representing roughly 28% of that.
Japanese companies are also increasingly concerned that Trump’s protectionist policies could trigger a broader economic slowdown and hit the country’s export-reliant economy, while hoping that strong wage growth helps sustain domestic consumption and the economic recovery.
The Bank of Japan is expected to hold rates steady at 0.5% and discuss just how much of a risk the escalating U.S. trade war poses to the export-reliant economy at its two-day policy meeting that concludes on Wednesday.
($1 = 149.4000 yen)
(Reporting by Makiko Yamazaki; Editing by Sam Holmes and Shri Navaratnam)
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