Japan’s exports to the United States fell 4.1% in 2025, contributing to a 12.6% drop in Tokyo’s trade surplus with Washington to 7.5 trillion yen ($47 billion), according to data released by Japan’s Finance Ministry.
The decline was largely driven by lower shipments of cars and auto parts, coupled with increased imports of liquefied petroleum gas, cereals, and power-generating machines. In December alone, exports to the U.S. dropped 11.1% to 1.81 trillion yen ($11.4 billion), pushing the monthly trade surplus down 31.7% to 690.6 billion yen ($4.4 billion).
In July, Japan and the United States agreed to a trade deal lowering tariffs on key sectors—including automobiles—from a potential 25% to 15%. The auto sector accounted for roughly 30% of Japanese exports to the U.S. in 2024.
Despite the tariff reduction, Tokyo officials and business leaders have noted that the 15% rate remains high compared to pre‑Trump administration levels, weighing on export competitiveness.
Overall, Japan recorded a trade deficit of 2.65 trillion yen in 2025, marking the country’s fifth consecutive annual deficit.
