Japan's exports rose in June thanks to increased shipments of electronics and car parts, but there are lingering worries that trade protectionism could sharply curb export demand.
Japan's exports to the United States fell slightly, but the trade surplus rose, which could invite scrutiny from U.S. President Donald Trump.
Overall exports rose 6.7 percent in June from the same period a year ago, less than the median estimate for a 7.0 percent annual increase expected by economists in a Reuters poll. Exports grew an annual 8.1 percent in May.
Exports are likely to continue to grow because global demand remains firm, but Japan's trade surplus with the United States makes it a potential target for Trump's protectionist policies.
Japan's imports rose 2.5 percent in the year to June, versus the median estimate for a 7.0 percent increase.
The trade balance was a surplus of 721.4 billion yen ($6.40 billion), versus the median estimate for a 534.2 billion yen surplus.
Japan's exports to the United States fell 0.9 percent year-on-year in June, versus a 5.8 percent year-on-year rise in May, due to a decline in shipments of cars and semiconductor manufacturing equipment.
Imports from the United States fell 2.1 percent year-on-year due a decline in crude oil, aircraft, and coal.
As a result, Japan's trade surplus with the United States was 590.3 billion yen, up 0.5 percent from the same period a year ago.
Japan's trade surplus with the United States may draw criticism as Trump's administration raises tariffs to lower the U.S. trade deficit and combat what it says are unfair trade policies.
The United States this month imposed 25 percent tariffs on $34 billion of Chinese goods to lower the U.S. trade deficit, and China quickly retaliated with an increase in tariffs on U.S. goods.
Trump has imposed tariffs on imported steel and aluminium, a blow to Japanese exporters, and has also criticised Japan for the small number of American vehicles it imports.