Exports of U.S.’ beef, pork and green vegetables to the Far-east may become expensive amid the weakening of Japan’s yen.

The currency of the world’s number 3 economy lapsed to 151.30 against the dollar on March 28, the lowest since 2022. 

Central Bank of Japan puts the blame on its own reduction of interest rates to bolster the economy. The bank has been keen to fight a decade-long lack of inflation in the country.

Direct Foreign Investments

Another reason for the slide is that Japan’s companies directly invest in the United States where interest rates are high. 

For instance, car makers like Toyota have bases in the U.S., where they invest and utilize the current high rates. Their profits circulate back to the Japanese economy in direct conflict with the low interest rates back at home. 

U.S.’ Agricultural Exports 

For exports, however, the slide of Japan’s currency may see some big American exports to Japan rise in price tag. This might put off consumers in Japan who have been used to standard prices for the same goods.

Fresh produce shipments are among those that will turn dear after their values convert from the dollar into yen.

Besides, perishables such as oranges go by air, which makes them even more expensive because of magnified fuel cost.

According to the U.S. Department of Agriculture (USDA), Japan was the fifth biggest destination for American agricultural products in 2023.

Corn exports led at 7.25 million tonnes worth $2.08 billion while beef products hit 243,018 tonnes worth $1.81 billion.

Pork products, soybeans, wheat and processed vegetables followed at $1.4 billion, $1.36 billion, $692 million and $605.18 million, respectively.

If Japan’s yen slide continues, the above values may reduce on the American side but rise on the Japanese side.