Japan’s exports rose 4.2% in February, beating expectations, but shipments to China and the US were weak.

Japan’s exports increased 4.2% in February compared to the same month last year, sharply slowing after hitting a three-year high in January.

However, this rate of increase was higher than the 1.6% rise expected by economists polled by Reuters and the 16.8% rise in the previous month.

Exports to mainland China, Japan’s largest trading partner, fell by 10.9%, and shipments to the United States fell by 8%. Total automobile exports to the United States, Japan’s largest export item, decreased by 14.8%.

Exports from Tokyo to Washington could further weaken after the U.S. announced a Section 301 investigation that could lead to the reimposition of tariffs.

This comes after President Trump’s “reciprocal” tariffs were struck down by the Supreme Court in February.

Despite the decline in exports to major trading partners, other Asian countries recovered their decline, with goods exported to Hong Kong surging 32.3% year-on-year.

Exports to 11 Southeast Asian countries, including Indonesia and Thailand, increased by 5.1%. The total value of exports to this regional group exceeds that of mainland China, making it Japan’s second-largest export destination in February.

Shipments to Western Europe also increased by 17.5%, supported by sales to Germany and the United Kingdom, which increased by 10.9% and 18.9%, respectively.

Japan’s export growth in February was supported by a 25.1% increase in the value of semiconductor exports, and automobile exports increased by 2.5% compared to the same month last year.

The export figures were released just before the Bank of Japan’s monetary policy meeting on Thursday, and just before a meeting between Prime Minister Sanae Takaichi and US President Donald Trump on the same day in the US.

Imports to Japan increased by 10.2%, compared to the expected 11.5% increase and a 2.6% decrease in January.

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