Japan logs fifth straight annual trade deficit
Japan recorded a trade deficit for the fifth consecutive year in 2025, according to government data released Thursday, as exports were affected by U.S. President Donald Trump’s tariffs and strained diplomatic relations with neighboring China.
For the full year, Japan posted a trade deficit of 2.65 trillion yen (about $17 billion), the Finance Ministry said in its preliminary figures, News.Az reports, citing AP.
While the deficit remained sizable, it was nearly 53 percent smaller than the shortfall recorded the previous year.
Exports for the year increased by 3.1 percent, while imports were largely flat on an annual basis, rising by less than 1 percent.
In December, Japan reported a trade surplus of 105.7 billion yen (approximately $669 million). However, the monthly surplus was 12 percent smaller than that recorded in the same month a year earlier. During the month, imports rose 5.3 percent year-on-year, while exports increased by 5.1 percent.
A breakdown by trading partners showed that exports to the United States declined 11 percent in December. In contrast, exports to Britain, Africa and several other Asian countries increased, while imports from Europe remained 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 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.
The controls were announced by Beijing after Prime Minister Sanae Takaichi suggested a Chinese move on Taiwan could prompt a Japanese military response.
Takaichi has called a snap elections for next month in hopes her party can gain strength in Parliament while she is popular with the public.
Overall, Japan’s economy has held up, despite grumbling from the public about rising prices and stagnant wages. The benchmark Nikkei on the Tokyo Stock Exchange keeps hitting new records.
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