Japan records trade deficit in FY 2025 for 5th yr in row, hit by U.S. tariffs
Japan recorded a 1.71 trillion yen (10.7 billion US dollars) trade deficit in fiscal 2025, marking its fifth consecutive year in the red. The shortfall was driven largely by U.S. tariffs on Japanese autos, which sharply reduced exports, Qazinform News Agency cites Kyodo.
Exports overall rose 4.0%, supported by demand for semiconductors and electronics, while imports edged up 0.5%, mainly due to communication devices. Shipments to the United States fell 6.6%, the first decline in five years, with auto exports plunging 15.9%.
Although Washington lowered tariffs on Japanese cars in September 2025 to 15% from the 27.5% imposed in April, they remain far above the 2.5% rate in place before President Donald Trump’s return to office.
For March 2026, Japan posted a 667 billion yen trade surplus, up 25.9% year-on-year, as crude oil imports rose for the third month in a row. Officials noted the figures reflected shipments before the U.S.-Israeli conflict with Iran began in late February, adding that Japan has moved to secure alternative fuel supplies, including from the United States.
To note, Japan targets 25% share of global autonomous car market.
