Japan Reduces Trade Deficit by 34% in the First Half of 2025 Despite Decline in Exports to the U.S.
Japan recorded a trade deficit of 2.22 trillion yen (approximately $15 billion) during the first six months of 2025, marking a 34.2% decrease compared to the same period last year, according to data released by the Japanese Ministry of Finance on Thursday, July 17.
This improvement is attributed to a 3.6% year-on-year increase in exports, reaching 5.336 trillion yen ($36 billion), while imports rose by only 1.3%, totaling 5.558 trillion yen ($37.5 billion).
In June alone, Japan experienced a trade surplus of 153.1 billion yen (around $1 billion), although this figure represented a 30.8% decline compared to June 2024 due to a drop in exports to the United States.
Japanese exports in June fell by 0.5%, stabilizing at 916 billion yen ($62 billion), while imports saw a slight increase of 0.2%, reaching 901 billion yen ($61 billion).
The trade balance with the United States faced significant pressure, with the bilateral surplus declining by 22.9% to 669.3 billion yen, driven by an 11.4% drop in exports to 171 billion yen, following new tariffs imposed by Washington in April. Imports from the U.S. also decreased by 2% to 104 billion yen.
The automotive sector was most affected, with vehicle exports to the U.S. falling by 26.7%, and spare parts by 15.5%. Exports of steel decreased by 28.5%.
Meanwhile, Japan continued to have a trade deficit with China for the fourth consecutive year, reaching 516.7 billion yen in June, a 53% year-on-year increase.
