Japan records fifth straight yearly trade deficit
Japan reported a trade deficit for the fifth straight year in 2025 as concerns over U.S. President Donald Trump’s tariffs and Japan’s political dispute with neighboring China continue to grow.
Japan recorded a trade deficit of 2.65 trillion yen ($25 billion) for the entire year, the Ministry of Finance said in preliminary data on Thursday.
This was almost 53 percent less than Japan’s budget deficit from the previous year.
Exports increased by 3.1 percent for the year, while imports remained about the same, increasing by less than one percent.
In December, Japan recorded a trade surplus of 105.7 billion yen ($A989 million).
The monthly surplus was 12 percent less than a year ago. While imports increased by 5.3 percent compared to the same month last year, exports increased by 5.1 percent.
By country, exports fell 11 percent to the United States in December, but increased to the United Kingdom, Africa and parts of Asia such as Hong Kong and India. Imports remained strong from Europe but declined from Brazil and the Middle East.
The United States imposed a 15 percent tariff on most imports from Japan; That’s a reduction from the 25 percent tariff Trump originally proposed, but an increase from before.
Another looming concern is the impact of China’s restrictions on rare earth exports on the Japanese manufacturing industry, including automakers.
The controls were announced by Beijing after Prime Minister Sanae Takaichi suggested that a Chinese move against Taiwan could prompt a military response from Japan.
Takaichi may call elections next month in the hope that his party can gain power in parliament while he remains popular among the public.
Overall, Japan’s economy has survived despite public complaints about rising prices and stagnant wages. The benchmark Nikkei on the Tokyo Stock Exchange continues to reach new records.
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