Japan-Iraq trade weakened sharply during the second quarter of 2026. Japanese exports to Iraq reached about $83 million during the period. That figure represents a 58.9% decline from the $202 million recorded in the first quarter.
Vehicles and automotive components remained the largest part of Japan’s shipments to Iraq. The category generated roughly $57 million in exports during the quarter. It therefore represented about 69% of Japan’s total exports to the Iraqi market.
The figures come from Japan’s Finance Ministry and highlight a major quarterly drop. Despite the decline, transportation products continued to dominate bilateral goods trade. The results also show Iraq’s continued demand for Japanese vehicles and related automotive products.
Rubber and rubber-based goods ranked second among Japan’s exports to Iraq. Shipments in this category reached approximately $6.7 million during the second quarter. Machinery, mechanical equipment, and related parts followed with exports worth about $4.4 million.
Optical, medical, and measuring instruments also formed part of Japan’s shipments. These products generated around $3.9 million during the quarter. Iron and steel products added another $3.3 million to the overall export value.
Other Japanese products also reached the Iraqi market during the period. These included pharmaceutical and chemical goods, synthetic fibers, soap, and cleaning products. However, their combined contribution remained well below the automotive sector.
The sharp quarterly decline raises questions about the pace of Japan-Iraq trade later this year. Export values can fluctuate because of shipment schedules, purchasing patterns, and changes in market demand. A single quarter therefore does not necessarily indicate a long-term shift.
Still, vehicles and auto parts remain central to Japanese exports to Iraq. Their strong share gives the automotive sector an important role in the two countries’ commercial relationship. Future export figures will show whether the second-quarter decline proves temporary.
For now, Japan’s latest trade data points to a significant contraction in exports. The country shipped far fewer goods to Iraq than during the opening quarter. Yet automotive products continued to anchor Japan-Iraq trade despite the broader decline.