Japan’s exports rose 4.2% year-on-year in September 2025, marking the first increase since April and the strongest growth since February. However, the latest figure was below market expectations of a 4.6% rise, as shipments to the U.S. declined for the sixth consecutive month amid weaker demand for autos, chip-making equipment, and motors. Exports grew to China (5.8%), ASEAN countries (8.0%), the EU (5.0%), Russia (7.0%), and the Middle East (18.5%), while sales to South Korea (-4.4%) and Australia (-11.1%) continued to fall. Washington finalized a trade pact with Tokyo last month, cutting tariffs on nearly all Japanese imports to 15% from as high as 27.5% on autos and a threatened 25% on other goods. While the deal provided some relief for Japanese exporters, particularly automakers who had been absorbing high costs by lowering prices, analysts cautioned that persistent margin pressure could weigh on corporate investment and wage growth ahead.