Published on 12:00 AM, October 19, 2018

Japan trade surplus with US shrinks further

Japan's trade surplus with the United States shrank for the third consecutive month, according to official data published Thursday, as Tokyo nervously eyes Washington's trade war with China.

The figures also showed an overall global trade surplus, but that exports had declined for the first time in nearly two years, apparently as a result of several natural disasters this summer.

The surplus -- a sensitive subject in Washington -- with the US came in at 590.3 billion yen ($5.2 billion) in September.

Exports of construction machinery and car parts down and imports of fossil fuels and other US goods up.

US President Donald Trump has reportedly described Japan as his next target after China as he seeks to reduce Washington's trade deficit.

Tokyo has watched nervously as Trump's government has imposed tariffs on Chinese goods and criticised Beijing for its currency policy.