Japan exports growth surges nearly 17% in January as shipments to China surge
Containers at a shipping terminal in Yokohama, Japan, on October 18, 2021. Japan’s trade deficit widened in September as imports exceeded export growth.
Kiyoshi Ota | Bloomberg | Getty Images
Japan’s exports rose 16.8% year-on-year in January, sharply beating market expectations and growing at the fastest pace since November 2022, as shipments to Asia and Western Europe increased.
Growth was well above December’s 5.1% and beat economists’ forecasts of 12% in a Reuters poll.
The value of exports to China, Japan’s biggest trading partner, rose 32% after surging 5.6% in December at a time when the two countries were locked in a diplomatic impasse over Prime Minister Sanae Takaichi’s comments about Taiwan.
Shipments to the United States fell 5%, following an 11.1% drop in December. Washington is Japan’s second largest trading partner.
By region, a nearly 26% increase in shipments to Asia and a more than 25% increase in shipments to Western Europe helped accelerate export growth, more than offsetting the 3.3% decline in North America.
Food, machinery and electrical machinery (including chips) were the commodities that recorded the sharpest growth, with increases of 31.3%, 14.3% and 27.3% respectively. The transportation sector, which contributed over 20% to export growth, increased by 0.8%.
Import growth in January fell 2.5% year-on-year, compared with a 5.1% increase in the previous month, missing Reuters forecasts for a 3% increase.
The sharp expansion will be a welcome start to the new year after Japan’s export growth fell to 3.1% last year, compared to a 6.2% increase seen in 2024.
The Japanese economy grew by just 0.1% annually in the fourth quarter, supported by private demand, but net exports shaved It is 0.8 percentage points behind growth. Throughout the year, GDP increased by 1.1% annually, driven by net exports.
Japan’s shipments fell in mid-2025 due to U.S. tariff concerns, but saw a rebound toward the end of the year following the announcement of a trade deal with the U.S. that would see tariffs reduced to 15%.
Tokyo is currently working on a $550 billion investment commitment with the United States as part of its trade deal with Washington. public broadcaster NHK reported Last Friday, it was said that the two countries had not yet agreed on the first projects linked to this commitment.
Japanese Economy Minister Ryosei Akazawa said he hoped the first projects would be completed before Takaichi meets US President Donald Trump, as quoted by NHK.
Trump announced his meeting with Takaichi just before the Feb. 8 Lower House elections, in which Takaichi led the ruling Liberal Democratic Party to a landslide victory.
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