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TOKYO (Reuters) - Japan’s exports to the United States fell for the first time in 17 months and Japanese business sentiment soured amid worries about U.S. President Donald Trump’s protectionist trade policies.

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FILE PHOTO: People walk through a shopping district in Osaka, western Japan October 22, 2017. REUTERS/Thomas White/File Photo

Exports to the United States dipped 0.9 percent in June from the same period a year ago on waning shipments of cars and semiconductor manufacturing equipment, two of Japan’s most important export products.

Thursday’s trade data came on the heels of the Reuters Tankan, which showed business sentiment slipped in July, reflecting companies’ fears about an intensifying trade dispute between the United States and China.

The batch of data highlighted concerns among Japanese policymakers who worry Trump may resort to tariffs or other protectionist measures to fix trade imbalances with Japan under his “America first” policy.

With American imports down 2.1 percent, Japan’s trade surplus with the United States widened 0.5 percent year-on-year to 590.3 billion yen ($5.24 billion). That could make it a potential target for Trump’s protectionist policies.

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FILE PHOTO: A ship sails in front of a factory emitting smoke and Mt. Fuji at Keihin industrial zone in Kawasaki, south of Tokyo, December 16, 2013. REUTERS/Toru Hanai/File Photo

Japan’s global exports rose 6.7 percent in June, while imports gained 2.5 percent.

“Overall exports remain healthy for now, but we are not sure how things are going to turn out on the trade policy front,” said Shuji Tonouchi, senior market economist at Mitsubishi UFJ Morgan Stanley Securities. “It’ possible talk of tariffs and trade friction could reduce corporate investment.”

The Reuters Tankan, which tracks the Bank of Japan’s closely watched quarterly tankan survey, found manufacturers’ sentiment index stood at 25

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