The country posted its first export decline in eight months, as U.S. tariffs on critical sectors, including autos and steel, weighed.

Japanese Prime Minister Shigeru Ishiba said on Tuesday that Tokyo will not rush a trade deal with the U.S. until it secures its national interests.

“It is important to proceed slowly but surely,” Ishiba reportedly said at a press conference in Calgary on Tuesday during his visit to Canada for the G7 summit.

His comments came ahead of Japan posting its first decline in exports in eight months, as U.S. tariffs on critical sectors, including autos and steel, weighed.

On Monday, Ishiba held a 30-minute talk with U.S. President Donald Trump, who left the two-day summit early to take stock of the conflict between Israel and Iran.

“I strongly believe that we must not prioritize reaching an early agreement at the expense of our national interests,” Ishiba said in a press conference, according to a Bloomberg report.

President Donald Trump has set a July 9 deadline for countries to agree to a trade deal with the U.S. He has already warned that failure will invite unilateral tariffs from Washington, D.C.

Like other countries, Japan is facing 25% tariffs on cars, its top exports to the U.S., as well as 50% tariffs on steel and aluminum. The U.S. has so far imposed a 10% blanket tariff on all Japanese exports, which could rise to 24%.

According to a Bloomberg report, citing Japan’s Finance Ministry, the country’s total exports by value fell 1.7% in May from a year earlier, while exports to the U.S. fell 11.1%.

However, the country’s overall export volumes rose 1.8%. According to the Bloomberg report, Taro Saito, the head of economic research at NLI Research Institute, noted that the uptick in shipments implies that Japanese businesses are lowering prices to remain competitive, which will negatively impact their profitability.

The decline in exports also raised concerns over a recession as domestic consumption remains tepid.

The SPDR S&P 500 ETF (SPY) has gained 1.4% this year, while the iShares MSCI Japan ETF (EWJ) is up 7.6%.

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