Japan Records USD16.7B Trade Deficit

(MENAFN) Japan recorded a staggering 2.65 trillion yen trade deficit—approximately $16.7 billion—marking an unprecedented fifth consecutive year of negative balance, according to government figures released Thursday.

The Finance Ministry reported that outbound shipments climbed 3.1 percent year-over-year to reach 110.45 trillion yen in 2025. However, this growth occurred despite a notable drop in exports to the United States, which fell for the first time in half a decade as elevated tariffs took their toll. Meanwhile, incoming goods rose a modest 0.3 percent to 113.10 trillion yen.

The trade relationship between Tokyo and Washington showed significant strain. Japan's surplus with the United States contracted sharply by 12.6 percent compared to the previous year, settling at 7.52 trillion yen for 2025. American-bound exports plummeted 4.1 percent to 20.41 trillion yen, while purchases from the U.S. increased 1.6 percent to 12.89 trillion yen, ministry figures revealed.

December's standalone performance painted a brighter picture: Japan secured a 105.69 billion yen trade surplus for the month. Exports advanced 5.1 percent to 10.41 trillion yen, narrowly outpacing the 5.3 percent import growth that brought incoming goods to 10.31 trillion yen.

MENAFN22012026000045017169ID1110634135