TOKYO (AP) – Japan’s exports grew at an 11.4 per cent annual pace in February while imports declined slightly, leaving a surplus after two straight months of deficits as worries grow about United States (US) President Donald Trump’s tariff hikes.
The stronger export growth yielded a trade surplus last month after two straight months of deficits, the Finance Ministry said yesterday.
Japan recorded a trade surplus of JPY584 billion (USD3.9 billion) last month. It had a trade deficit of JPY415 billion the previous year. The surge in exports outpaced a seven-per-cent annual increase in January. Exports totalled JPY9.19 trillion (USD61 billion), while imports fell 0.7 per cent to JPY8.61 trillion (USD57 billion).
In January, imports jumped nearly 17 per cent year-on-year.
Japan’s exports have surged in recent months as businesses rushed to send overseas shipments before Trump’s tariffs kick in.
Higher US tariffs on steel and aluminium have already started, but the biggest threat to the Japanese economy will come in auto tariffs that are due to take effect next month.
Japanese officials have been seeking an exemption from the Trump administration for Japan, an important trading partner and ally of the US.
Japan’s exports to the US grew 10.5 per cent in February while imports from the US fell 2.7 per cent, compared to a year earlier, leaving a surplus of JPY918.8 billion (USD6.2 billion).
Exports to Asia jumped about 16 per cent from a year earlier while those to Europe fell 4.5 per cent.
A large share of the jump in exports included food, machinery and vehicles.
Imports from the Middle East fell as oil prices declined.
Also yesterday, Japan’s central bank chose, as expected, to keep its benchmark interest rate unchanged at 0.5 per cent. The central bank has been gradually raising the key rate from below zero to counter rising inflation, but Trump’s policies have raised uncertainty over the global economic outlook as well as trade.
