Japan’s Trade Deficit Surges In January 2025

Japan recorded a trade deficit of ¥2.76 trillion ($18 billion) in January, the Finance Ministry reported amid growing concerns over looming tariffs from the Trump administration, Yuri Kageyama reported for the Associated Press (AP).

Exports in January totaled ¥7.86 trillion ($52 billion), marking a 7% increase from a year earlier, driven by rising shipments of machinery, medical goods, and ships.

Japan also posted a trade deficit in January 2024, but the amount surged 60% year-over-year last month. Exports in January totaled ¥7.86 trillion ($52 billion), marking a 7% increase from a year earlier, driven by rising shipments of machinery, medical goods, and ships.

Japan has requested an exemption from Trump's "reciprocal tariffs", as well as from the previously announced tariffs on steel and aluminum, but uncertainty remains.

The U.S. has long been one of Japan’s most critical trading partners.

Imports, which reached ¥10.62 trillion ($70 billion), rose 16.7% from the previous year. Increases were recorded in machinery, computers, and various food products, including fruit, as demand grew while the yen weakened against foreign currencies.

Despite the deficit, Japan recorded a ¥477 billion ($3 billion) trade surplus with the U.S., as exports to the U.S. rose 8%, particularly in electrical equipment, cars, and raw materials.