Japan’s exports fell for the second consecutive month due to U.S. tariffs, impacting the fragile economy. Washington plans to impose 25% tariffs on Japanese imports if a deal isn’t reached by August 1. Exports to the U.S. dropped 11.4% in June, with automobile shipments rising 3.4% to stay competitive.

The trade balance showed a surplus of 153.1 billion yen in June, lower than the forecasted 353.9 billion yen. U.S. tariffs are further straining Japan’s economy, already struggling with weak domestic consumption. The country’s economy shrank in the first quarter due to rising living costs impacting demand.

Read more at Yahoo Finance: Japan’s exports drop as US tariffs hit automobiles, pressure set to intensify