Japan Notches 5th Straight Yearly Trade Deficit

Japan posted a trade deficit for the fifth straight year in 2025, the most recent government data released showed, as exports were hit by U.S. President Donald Trump’s tariffs and a diplomatic rift with China.

For December, Japan recorded a 105.7 billion yen ($669 million) trade surplus. (Photo: Green Award) 

For the full year, Japan logged a 2.65 trillion yen ($17 billion) trade deficit, the Finance Ministry reported in preliminary data, Yuri Kageyama wrote for the Associated Press (AP).

That figure was nearly 53% smaller than the deficit recorded the previous year. Exports for the year rose 3.1%, while imports were largely flat year over year, rising less than 1%.

For December, Japan recorded a 105.7 billion yen ($669 million) trade surplus.

The monthly surplus was 12% smaller than the level recorded a year earlier. Imports grew 5.3% from the same month a year ago, while exports increased 5.1%.

By destination, exports to the U.S. declined 11% in December, while exports to Britain, Africa, and several other Asian countries rose. Imports from Europe were strong.

The U.S. has imposed a 15% tariff on most imports from Japan — down from the 25% Trump initially proposed but higher than before he took office a year ago. Another looming concern is the impact on Japanese manufacturing, including automakers, from China’s restrictions on rare-earth exports.