Japan records a 5th straight yearly trade deficit
TOKYO: Japan posted a trade deficit for the fifth straight year in 2025, government data showed on Thursday, as exports were hit by US President Donald Trump’s tariffs and a diplomatic rift with neighbouring China.
For the full year, Japan logged a 2.65 trillion yen ($17 billion) trade deficit, the Finance Ministry reported in preliminary data.
That was nearly 53% smaller than the deficit Japan recorded the previous year. Exports for the year rose 3.1%, while imports were roughly flat on the year, gaining less than 1%.
For the month of December, Japan recorded a 105.7 billion yen ($669 million) trade surplus.
The monthly surplus was 12% smaller than a year earlier. Imports grew 5.3% from the same month a year ago, while exports grew 5.1%.
By destination, exports to the US declined 11% in December, while shipments to Britain, Africa and some other Asian countries rose. Imports from Europe were strong.
The United States has imposed a 15% tariff on most imports from Japan, a reduction from the 25% that Trump initially proposed but an increase from levels before he took office a year ago.
Another looming concern is the impact on Japanese manufacturing, including automakers, from China’s curbs on exports of rare earths. Beijing announced the controls after Prime Minister Sanae Takaichi suggested a Chinese move on Taiwan could prompt a Japanese military response.
Takaichi has called a snap election for next month in hopes her party can gain strength in Parliament while she remains popular with the public.
Overall, Japan’s economy has held up despite public grumbling about rising prices and stagnant wages. The benchmark Nikkei on the Tokyo Stock Exchange has continued to hit new records.
By RSS/AP
