Trump Tariffs Hit Japan: January Trade Deficit Reaches 1 Trillion Yen, Auto Exports Down 9%

Japan's Ministry of Finance Releases Trade Statistics
Exports Up 16.8%, Marking Record January High
Exports to the U.S. Decline for Second Consecutive Month

Japan recorded a trade deficit of 1.1526 trillion yen (about 11 trillion won) last month.

Japan's Ministry of Finance announced on the 18th that the trade balance for last month posted a deficit of 1.1526 trillion yen in the preliminary January trade statistics. This is the first time in three months that the trade balance has been in deficit. The deficit narrowed by 58% compared with the same month a year earlier.

Reuters, Yonhap News

Exports in January rose 16.8% year-on-year to 9.1875 trillion yen (about 87 trillion won), marking a record high for January. Kyodo News analyzed that this was due to increased exports of electronic components such as semiconductors and nonferrous metals to Asian countries.

In contrast, trade with the United States continued to feel the impact of U.S. President Donald Trump's tariff policies. Exports to the United States in January came to 1.4621 trillion yen (about 14 trillion won), down 5.0% from a year earlier and declining for the second consecutive month. Among these, automobile exports were tallied at 395.4 billion yen (about 3.7 trillion won), a decrease of 9.9%.

Japan's trade surplus with the United States stood at 367 billion yen (about 3.5 trillion won), down 23% from a year earlier.

Meanwhile, total imports in January fell 2.5% year-on-year to 10.3401 trillion yen (about 98 trillion won).