Asia demand lifts Japan’s exports as US tariffs bite, a timely boost for new PM Takaichi

Tokyo’s partial trade deal with Washington in July had trimmed proposed tariffs on Japanese autos to 15 percent from the initial 25 percent, but the sector remains under strain as American demand cools.

Chips power the comeback

Semiconductors were the quiet hero of Japan’s September trade recovery. Chip exports rose 12.6 percent in value, according to preliminary data cited by Reuters, reflecting strong orders across Asia’s tech supply chain.

The surge in electronics helped offset declines in traditional export categories like cars and machinery, signalling a gradual structural shift in Japan’s trade mix, from metal to silicon.

An economy steadier than its politics

The export data landed just as Japan welcomed its first female prime minister, Sanae Takaichi, following months of leadership churn inside the ruling Liberal Democratic Party.

While the rebound predates her official appointment, the timing gives her government a valuable tailwind. Markets had already begun pricing in what investors dubbed the 'Takaichi trade,' expectations of large-scale fiscal stimulus and continued monetary easing that have pushed the Nikkei 225 to record highs and weakened the yen beyond the 150-mark.

Momentum meets leadership

Japan’s economy has held up better than expected this year. Second-quarter GDP was revised up to 0.5 percent quarter-on-quarter from an initial 0.3 percent, easily beating analyst forecasts as per CNBC. Imports also grew 3.3 percent in September, reversing a 5 percent decline in August.

The combination of a weaker yen, strong regional demand, and chip-driven exports suggests the world’s fourth-largest economy is entering a phase of cautious momentum, one that Takaichi’s fiscal push could amplify if global conditions hold steady.