Japan's exports rose 11.4% in February

Japan's exports rose by 11.4% in February, marking the fifth consecutive month of growth. This increase was slightly below expectations of 12.1% and follows a 7.2% rise in January. Some Japanese companies, such as Sony Group, have begun stockpiling inventory in the U.S. due to concerns over new tariff policies introduced by President Donald Trump. Exports to the U.S. increased by 10.5% compared to last year, while shipments to China saw a rise of 14.1%. The rise in exports to China may have been helped by more working days, as the Lunar New Year holiday ended earlier this year. Meanwhile, Japan's imports fell by 0.7%, contrary to forecasts that predicted a slight rise. Japan recorded a trade surplus of 584.5 billion yen, or about $3.91 billion. This was lower than the expected surplus of 722.8 billion yen. Trump's recent tariffs on steel and aluminum, set at 25%, and the anticipated tariffs on automobiles starting April 2 pose challenges for Japan's export-driven economy. Automobiles make up roughly 28% of its exports to the U.S., which is Japan's largest market. Many Japanese businesses are worried that these trade tensions could lead to a wider economic slowdown. Despite this, there is some hope that rising wages will help support domestic consumption. The Bank of Japan is expected to keep interest rates steady at 0.5% and discuss the potential risks posed by the trade conflict at its policy meeting today.