Japan Logs Trade Deficit In FY2025 For Fifth Year In A Row, Hit By US Tariffs

TOKYO, April 22 (Bernama-Kyodo) -- Japan logged a trade deficit of 1.71 trillion yen (US$10.7 billion) in the year through March, remaining in the red for the fifth straight year, as higher United States (US) tariffs implemented since April 2025 dragged down auto exports, government data showed on Wednesday, Kyodo News Agency reported.

In fiscal 2025, exports rose 4.0 per cent on the back of demand for semiconductors and other electronic devices, while imports edged up 0.5 per cent from a year earlier due to demand for communication devices, the Finance Ministry said in a preliminary report.

Goods bound for the US declined 6.6 per cent, marking the first fall in five years, with autos falling 15.9 per cent.

While US import duties on Japanese cars were lowered in September to 15 per cent, from 27.5 per cent imposed in April, under a trade deal struck by Tokyo and Washington, they remained six times higher than the 2.5 per cent tariff in place prior to US President Donald Trump's return to the White House.

For March, Japan recorded a trade surplus of 667 billion yen, up 25.9 per cent from the previous year.

Crude oil imports rose 2.4 per cent for the third straight month by volume.

As for the impact on oil imports of the US-Israeli war against Iran, a ministry official noted that the data reflected fuel shipped from West Asia before the launch of the attacks on Feb. 28, adding that the government had sought to secure supplies from other regions such as the US.

-- BERNAMA-KYODO