Global markets have been in turmoil because of Trump's trade war with China. A slowdown in China is certain to hurt other regional economies, including Japan's. Japan's exports to China in July fell 9.3% while its imports from China gained 2.8%. Japan's exports to the U.S. in July grew 8.4% while imports from the U.S. rose 3.5%.
Trump says he plans to impose 10% duties on an additional $300 billion of Chinese imports to the U.S., extending penalties to almost everything the United States buys from China. Japan is also entangled in a trade dispute with neighboring South Korea.
Japan's exports to South Korea in July dipped 6.9% while imports slid 8.6%.