Japan’s Trade Deficit Halves to ¥2.7 Trillion in 2025

Strong Semiconductor Sales

Japan’s balance of trade (exports minus imports) for calendar 2025 showed a deficit of ¥2.7 trillion. While this is the fifth consecutive year for a trade deficit to be seen, it shrank by 52.9% year on year.

The total value of exports rose by 3.1% to ¥110.4 trillion, which was its highest level since comparable statistics were first compiled in 1979. While high tariffs imposed by US President Donald Trump’s administration led to a drop for automobile exports, there was a rise in shipments of semiconductors and other electronic components bound for Asia and the European Union. The value of imports climbed by 0.3% to ¥113.1 trillion, which is its second highest level.

Japan’s exports to the United States fell by 4.1% to ¥20.4 trillion, the first decrease in this bilateral figure in five years. The Trump tariffs showed a severe effect, with drops of 11.4% for automobiles and 10.7% for automobile parts. Imports from the United States rose by 1.6% to ¥12.9 trillion, resulting in a trade surplus of ¥7.5 trillion, down 12.6% year on year.

Exports to China dipped by 0.4%, while imports rose by 5.5%, due to increases for computers and smartphones. This led to a trade deficit of ¥7.9 trillion, rising in value again after falling last year.

Lower energy prices meant Japan’s trade deficit with the Middle East fell by 21.5% to ¥6.9 trillion.

Data Sources

• Preliminary trade statistics for 2025 (Japanese) from the Ministry of Finance.

(Translated from Japanese. Banner photo © PhotoAC.)