The year-on-year drop of 2.6% in July included a 10.1% plunge in exports to the US, the finance ministry data showed.

Japanese exports of motor vehicles – cars, buses and trucks – to the world’s biggest economy plummeted by 28.4%, while those of auto parts fell 17.4%.

Trump has imposed painful import tariffs on countries around the world in an attempt to boost US manufacturing and reduce the colossal US trade deficit.

On close ally Japan, Trump initially imposed across-the-board levies of 10% as well as tariffs of 27.5% on cars.

Japan’s automobile industry, which includes giants like Toyota and Honda, accounts for around 8% of the country’s jobs.

Japan last month secured a trade deal that cut a threatened 25% “reciprocal” tariffs to 15%.

The rate on Japanese cars was also cut to 15%, although to Tokyo’s consternation, this has yet to take effect.

Data last week showed that the world’s fourth-biggest economy eked out better-than-expected annualised growth of 1.0% in the second quarter.