The fall was sharper than the 2.1% contraction expected by economists polled by Reuters.
Exports to the U.S. also continued to fall, dropping 10.1% in July.
While the effects of the 15% tariffs will not show up until the August data, analysts have warned about their impact on the Japanese economy.
Japan’s exports plunged 2.6% in July from a year earlier, their steepest drop since February 2021, as shipments to its two largest markets — the United States and China — declined.
The fall was sharper than the 2.1% contraction forecast in a Reuters poll and compared with a 0.5% decline in June.
