Japan's exports and imports grew in January, as tariff worries loom

TOKYO (AP) — Japan recorded a trade deficit of 2.76 trillion yen ($18 billion) in January, the Finance Ministry reported Wednesday, as worries continue to grow about looming tariffs from the administration of U.S. President Donald Trump.

Japan also had a trade deficit, which measures the value of exports minus imports, a year ago, but the amount rose 60% last month from January 2024.

Exports totaled 7.86 trillion yen ($52 billion) last month, up 7% on-year, rising in a variety of products including machinery, medical goods and ships.

Imports, totaling 10.62 trillion yen ($70 billion), rose 16.7% from the same month last year. Imports grew in machinery, computers and various foodstuffs including fruit, as demand grew while the yen weakened against foreign currencies.

Consumption in Japan is expected to remain relatively solid, partly because of recent wage growth.

Japan recorded a nearly 477 billion yen ($3 billion) trade surplus with the U.S. as exports rose 8% in items such as electrical equipment, cars and raw materials.

Japan is asking the U.S. to exclude it from Trump’s so-called “reciprocal tariffs,” as well as those on steel and aluminum. Uncertainty remains as the U.S. has long been one of Japan’s most important trading partners.

The growth in both Japanese imports and exports follows a government report earlier in the week that the economy grew faster than expected in the October-December quarter.

“Japanese trade data suggest a modest economic recovery underway in the current quarter. But the jump in exports comes with big caveats, particularly the specter of U.S. tariffs, that cloud the outlook,” said Min Joo Kang, senior economist at ING.

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