Catenaa, Sunday, January 2025 – Japan’s exports climbed 2.8% in December compared to a year earlier, marking the third consecutive monthly increase and surpassing forecasts of 2.3%, according to government data released last Thursday.
The weaker yen boosted shipment values, particularly for chipmaking equipment to Taiwan, but export volumes to key trading partners fell, reflecting challenges ahead.
Exports to the United States dropped 2.1%, while shipments to China, Japan’s largest trading partner, declined by 3%. These figures highlight the growing uncertainty in global trade as US President Donald Trump signals potential tariffs on imports from major partners, including China, Canada, and Mexico.
Firms with operations in the US are preparing for potential tariffs by expanding domestic manufacturing and procurement, signaling possible shifts in global supply chains. Meanwhile, tighter US restrictions on business with China could further complicate trade relations.
Japan recorded a trade surplus of 130.9 billion yen ($836.8 million) in December, defying predictions of a deficit, as imports grew a modest 1.8% year-over-year. The annual trade deficit shrank to 5.3 trillion yen, down from 9.5 trillion yen in 2023.
While sustained domestic wage growth may support consumer spending, uncertainties surrounding Trump’s tariff plans could weigh on Japan’s export outlook in the months ahead.
