Japan’s exports fell in August for the fourth consecutive month as higher US tariffs continued to hit commerce, especially from carmakers, even after a July trade deal.

Overall, cross-border shipments edged down 0.1%, which was better than a 2.0% drop estimated by analysts. Asia and Europe helped cushion a US decline. But the damage of tariffs was clear in that exports to the US, measured by value, slumped around 14% from a year ago, the most in more than four years.

The drop in shipments to America was led by a 28.4% slide in cars, which was somewhat expected as Washington continued to slap a 27.5% tariff on Japanese vehicles through August. While the US agreed to cut the rate to 15% in the July trade deal, the new level didn’t take effect until Sept. 16.

The latest data also confirmed a worrisome trend for the Japanese economy. While the value of car shipments to the US plunged that much, the number of units fell only 9.5%. That means Japanese automakers are continuing to slash prices to preserve market share there. That’s cutting into their profit margins, which economists say could compromise their ability to keep raising wages.

Any doubts over pay growth bode ill for the economy as it tries to fully depart from years of falling prices, or deflation. The Bank of Japan continues to pay close attention to the fallout of US tariffs as it mulls when to raise the benchmark interest rate again.

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