Japan’s exports to the United States declined sharply in December and fell overall in 2025, as higher tariffs continued to pressure trade between both countries, official figures released on Thursday showed.
According to data from Japan’s finance ministry, exports to the US dropped by 11.1 per cent in December to 1.81 trillion yen ($11.4 billion). The trade surplus with Washington also narrowed significantly, shrinking by 31.7 per cent to 690.6 billion yen ($4.4 billion) during the month.
For the full year 2025, Japan’s exports to the United States fell by 4.1 per cent, contributing to a 12.6 per cent decline in Tokyo’s trade surplus with Washington, which stood at 7.5 trillion yen ($47 billion).
Officials attributed the weaker performance largely to a reduction in the number of cars and auto parts shipped to the US. At the same time, Japan increased imports of liquefied petroleum gas, cereals and power-generating machinery, further narrowing the surplus.
In July, Tokyo and Washington reached a trade agreement that reduced tariffs to 15 per cent from a previously feared 25 per cent. The deal was particularly significant for the auto sector, which accounted for about 30 per cent of Japan’s exports to the United States in 2024.
Despite the reduction, Japanese government officials and business leaders have expressed concern that the 15 per cent tariff rate remains high compared with levels before the second Trump administration, continuing to weigh on exporters.
Beyond trade with the US, Japan’s overall trade balance remained in the red. The country recorded a trade deficit of 2.65 trillion yen in 2025, marking its fifth consecutive year of deficits.
Japan Exports to US Fall Sharply as Tariffs Weigh on Trade
