According to a report from Japan's Nikkei newspaper, Japan has lost its long-standing position as one of the world's top five export countries, falling to seventh place behind South Korea and Italy in the second half of last year. The Organization for Economic Co-operation and Development (OECD) statistics show that Japan's total exports reached $370 billion, which is $60 billion less than Italy's $376 billion. This decline marks a significant moment in Japan's economic history, as it traditionally held a spot in the top five alongside countries like China, the United States, Germany, and the Netherlands.

The shift in status is attributed to several factors, including the impact of the US tariff policies implemented under the Trump administration that adversely affected Japan's automotive industry, which accounts for 17% of its total exports. In contrast, Italy boasts iconic car brands like Ferrari, Lamborghini, and Fiat, though their automotive sector contributes only 3% of total exports. The relationship between tariffs and industry strength showcases the complexity of global trade dynamics and how domestic policies can directly influence international standings.

Moreover, the depreciation of the yen has compounded the issue, impacting Japan's export competitiveness. While a weaker yen generally aids exporters, the necessity to convert export earnings into dollars has led to a greater reduction in reported exports when compared to Italy. The report indicates that this situation has resulted in Japan being surpassed by South Korea by a slim margin as well, marking a notable shift in the export landscape that hasn't been observed in decades.