Japan unexpectedly incurred a trade deficit in May after import growth of 18% outstripped economists’ expectations of a 15% expansion. The steel industry is the likely culprit, with imports of iron ore jumping 68%. With prices having increased only modestly and a 38% rise in imported steel products this would suggest a mixture of increased demand and possibly diversion of volumes from markets with higher tariff barriers. Exports to the U.S. increased just 5%, while imports climbed 11% – moves that may reduce friction with the U.S. as low-key trade talks continue. Discussions about new de...