Japan’s exports surge and manufacturers’ mood improves
Japan’s exports rose nearly 17 percent in January compared to the previous year, driven by seasonal factors and strong demand in China and other Asian markets.
Imports fell 2.5 percent to 10.3 trillion yen ($95 billion) compared to the same month of the previous year, while exports increased 16.8 percent to 9.19 trillion yen, the finance ministry reported on Wednesday.
There remains a deficit of 1.15 trillion yen; this was less than half the trade deficit recorded a year ago.
Analysts stated that the main reason for the big jump at the beginning of 2026 was that the Lunar New Year occurred later than usual and fell on February 17.
Japan’s economy is heavily dependent on exports, and U.S. President Donald Trump’s dramatic increases in tariffs have had a negative impact.
The economy grew at an anemic pace of 0.2 percent annually in the last quarter; Growth in 2025 was only 1.1 percent, as weak exports offset the modest increase in private consumption.
Latest data showed that exports to the United States fell by 0.5 percent in January, while imports from the United States increased by 3 percent.
Exports of vehicles to the United States, which account for about a third of the total, fell about 10 percent.
Despite hostilities with Beijing over Prime Minister Sanae Takaichi’s comments about Taiwan, Japan’s exports to China rose 32 percent year-on-year in January.
Data show that exports to all of Asia were strong, up 26 percent.
Imports of semiconductors and other computer components showed the fastest growth; This likely reflects the impact of the boom in artificial intelligence, which has skyrocketed demand for data center equipment and computer chips.
“But the currently strong tailwind from the AI boom in the US is unlikely to continue, suggesting that gains in exports to Asia excluding China will moderate,” Norihiro Yamaguchi of Oxford Economics said in a commentary.
He said that exports are “likely to follow a moderate course” in March.
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