Japanese exports rise moderately in December as shipments to US drop

(MENAFN) Japan’s exports grew 5.1% year-on-year in December, falling short of market expectations, according to official data released Thursday by the Finance Ministry. Shipments to the United States, in particular, recorded a sharp decline, continuing a downward trend despite a brief recovery in November.

Markets had anticipated a 6.1% annual increase. Earlier concerns over US tariffs had weighed on Japanese exports during mid-2025, but shipments rebounded toward year-end after a trade deal cut tariffs to 15%. Nevertheless, after an 8.8% rise in November, exports to the US fell 11.1% in December.

Exports to Hong Kong rose 31.1%, while shipments to mainland China increased 5.6%, contributing to a 10.2% rise across Asia. For the full year 2025, Japan’s exports climbed 3.1%, a slower pace than 2024’s 6.2% growth. Exports to the US and China dropped 4.1% and 0.4%, respectively, although strong gains to Hong Kong and Taiwan—17.8% and 15.1%—partially offset these declines.

Imports rose 5.1% in December, surpassing expectations of 3.6% and showing a sharp increase from November’s 1.3% growth.

The data comes amid heightened tensions with China. Since November, Tokyo-Beijing relations have worsened following remarks from Prime Minister Sanae Takaichi suggesting Japan could intervene militarily if China acted against Taiwan. In response, China restricted exports of dual-use commodities to Japan and suspended imports of Japanese seafood.

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