Japan’s exports to the United States fell 11.1 per cent in December 2025 and dropped more than 4 per cent for the full year, official data showed on Thursday, as tariffs take effect.
Okay News reports that Japan’s exports to the US declined 4.1 per cent in 2025, contributing to a 12.6 per cent reduction in Tokyo’s trade surplus with Washington to 7.5 trillion yen ($47 billion).
The finance ministry attributed the shrinking surplus primarily to lower exports of cars and auto parts, alongside higher imports of liquefied petroleum gas, cereals, and power-generating machines.
In December alone, exports to the US dropped to 1.81 trillion yen ($11.4 billion), with the trade surplus shrinking 31.7 per cent to 690.6 billion yen ($4.4 billion).
In July 2025, Japan and the United States agreed to a trade deal reducing tariffs to 15 per cent from an initial threat of 25 per cent.
The reduction included the auto sector, which accounted for 30 per cent of Japanese exports to the US in 2024.
However, Japanese officials and business leaders have described the 15 per cent tariff rate as still high compared to pre-2025 levels.
Japan recorded an overall trade deficit of 2.65 trillion yen in 2025, marking its fifth consecutive year of deficit.
