AP – Japan recorded a trade deficit of JPY2.76 trillion (USD18 billion) in January, the Finance Ministry reported yesterday, as worries continue to grow about looming tariffs from the administration of United States (US) President Donald Trump.
Japan also had a trade deficit, which measures the value of exports minus imports, a year ago, but the amount rose 60 per cent last month from January 2024.
Exports totalled JPY7.86 trillion (USD52 billion) last month, up seven per cent on-year, rising in a variety of products including machinery, medical goods and ships.
Imports, totalling JPY10.62 trillion (USD70 billion), rose 16.7 per cent from the same month last year. Imports grew in machinery, computers and various foodstuffs including fruit, as demand grew while the yen weakened against foreign currencies.
Consumption in Japan is expected to remain relatively solid, partly because of recent wage growth. Japan recorded a nearly JPY477 billion (USD3 billion) trade surplus with the US as exports rose eight per cent in items such as electrical equipment, cars and raw materials.
Japan is asking the US to exclude it from Trump’s so-called “reciprocal tariffs”, as well as those on steel and aluminium.
Uncertainty remains as the US has long been one of Japan’s most important trading partners.
