Japanese trade growth continued for a sixth month in June, with import growth of 16% beating the 10% export expansion. That shows domestic demand is the main economic driver, and will likely continue based on the recent Tankan manager survey. The trade surplus vs. the U.S. increased 70% on a year earlier, which will prove unhelpful in ongoing trade talks led by Vice President Pence even though the longer term trend is downward. The transport sector lagged, with 4% export growth only, likely the result of a 33% drop in shipments of cars to the U.S. as shown in Panjiva data.