Japan's exports just stalled.

Hello, this is the Marketplace Morning Report, and we're live from the BBC World Service.

I'm Leanna Byrne.

So Japan's overall exports dropped in May, the first decline in eight months, as Asia's second

largest economy feels the squeeze from President Trump's tariffs.

Tokyo is pushing hard for a trade deal and

automakers are taking the brunt of the hit. The BBC's Katie Silver has the story.

Selling Japanese cars abroad is a fundamental part of the country's economy. Last year, the US spent

about $40 billion importing Japanese cars, including Toyota, Honda and Nissan vehicles. It was about a third of

what Americans spent overall on Japanese goods. Now though, these cars are subject to a 25% tariff,

which, other than Britain, has hit the automotive industry across the board. It's contributed to

Japanese exports to the US dropping by more than 11% in the month of May compared to the same period

a year earlier. The tariffs are a huge blow to Japan's manufacturing sector and something

Prime Minister Shigeru Ashiba is desperately trying to tackle. There was hope some progress may

have been made when he met President Trump at the G7 summit in Canada. But as Siba said,

some disagreements persisted, and despite

negotiating until the last minute, he walked away empty-handed. Japan also faces a 24% so-called

reciprocal tariff rate. That's due to start July 9th, unless a last-minute deal can be reached.

Katie, silver there. Now, let's do the numbers.

Oil prices dip slightly today after a 4% jump on Tuesday, driven by fears of supply disruption

from the Israel-Iran conflict. Brent is trading just above $76 a barrel. Markets are watching

both the risk to shipping through the Strait of Hermuz and today's

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