Japan's Trade Deficit Continue for Fifth Year

Japan just wrapped up another tough year on the trade front. For the fifth time in a row, the country ended 2025 with more money going out for imports than coming in from exports. It's a deficit of about 2.65 trillion yen, or around $17 billion, and while that sounds huge, it's actually a lot smaller than before, down by over half from the previous year.
The numbers came out from Tokyo's Finance Ministry on January 22, 2026, based on their early data. Exports climbed by 3.1 percent last year, which is a bit of good news for companies selling cars, gadgets, and machinery abroad. But imports barely budged, up less than 1 percent, keeping things unbalanced. A big part is the tariffs slapped on by U.S. President Donald Trump, which made it harder for Japanese goods to compete in America.
Then there's the ongoing spat with China over diplomacy and trade, stirring up more headaches. Japan, being so export-heavy, feels these global punches right in the wallet. It's like trying to run a shop where your best customers are arguing with you. On a brighter note, recent months showed some surpluses, like in November and December 2025, hinting at a possible turnaround.
But five years straight? That's got economists watching closely for how it might slow growth or push up the yen's value. It's a reminder of how connected our world is. Japan might need fresh strategies to get back on track.

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