In Tokyo, Japan experienced an 11.4% increase in exports over the year in February, while imports saw a slight decline, resulting in a trade surplus following two months of deficits. This development has unfolded amidst growing concerns regarding President Donald Trump’s imposition of increased tariffs. The Finance Ministry reported these figures on Wednesday, marking a noticeable shift in Japan’s trade scenario.
Last month, Japan achieved a trade surplus of 584 billion yen, equivalent to approximately $3.9 billion. In contrast, the nation faced a trade deficit of 415 billion yen in the previous year. February’s export growth surpassed January’s 7% increase, with total exports amounting to 9.19 trillion yen, around $61 billion. Imports, on the other hand, witnessed a slight dip of 0.7%, reaching 8.61 trillion yen or $57 billion.
The notable surge in exports can partially be attributed to companies accelerating their overseas shipments in anticipation of the tariffs introduced by Trump. While the increased tariffs on steel and aluminum from the U.S. have already commenced, a significant concern for Japan lies in the impending auto tariffs set to start next month. Japanese officials are actively seeking an exemption from the U.S. administration, highlighting Japan’s vital role as a trading partner and ally.
Japan’s trade with the U.S. showed positive results, with exports growing by 10.5% in February compared to the previous year, while imports from the U.S. decreased by 2.7%. This resulted in a trade surplus of 918.8 billion yen, or about $6.2 billion. Meanwhile, exports to Asia surged by approximately 16%, whereas shipments to Europe experienced a decline of 4.5%.
The significant rise in exports comprised various sectors, including food, machinery, and vehicles. As oil prices dropped, imports from the Middle East saw a decrease. In other developments, Japan’s central bank decided, as anticipated, to maintain its benchmark interest rate at 0.5%. The gradual increment of the interest rate from below zero aims to tackle rising inflation. However, Japan remains wary, with Trump’s policies contributing to uncertainties in the global economic landscape and trade dynamics.
