Japan’s exports to the United States fell by 11.1 per cent in December and declined by more than four per cent over the course of last year, official figures showed on Thursday, as the impact of tariffs weighed on trade.
In 2025, exports to the US dropped by 4.1 per cent, contributing to a 12.6 per cent fall in Japan’s trade surplus with Washington, which stood at 7.5 trillion yen ($47 billion), according to data from the finance ministry.
The decline was largely driven by reduced shipments of cars and auto parts, alongside increased imports of liquefied petroleum gas, cereals and power-generating machinery, the ministry said.
In December alone, exports to the US decreased by 11.1 per cent to 1.81 trillion yen ($11.4 billion), while the trade surplus narrowed sharply, falling 31.7 per cent to 690.6 billion yen ($4.4 billion).
In July, Tokyo and Washington announced a trade agreement that lowered tariffs to 15 per cent from a previously feared 25 per cent.
The reduction was particularly significant for the automotive sector, which accounted for 30 per cent of Japan’s exports to the United States in 2024.
Nevertheless, Japanese officials and business leaders have said the 15 per cent tariff level remains high compared with conditions prior to the second Trump administration.
Overall, Japan recorded a trade deficit of 2.65 trillion yen in 2025, marking its fifth consecutive annual deficit.
