Japan’s exports grew at an impressive 11.4% annual rate in February, while imports saw a slight decline, resulting in a trade surplus after two months of deficits. This comes amid concerns over President Donald Trump’s potential tariff increases.
The Finance Ministry reported that Japan achieved a trade surplus of 584 billion yen ($3.9 billion) in February, reversing a 415 billion yen deficit from the previous year. The boost in exports outpaced a 7% annual increase in January. Exports totaled 9.19 trillion yen ($61 billion), while imports fell by 0.7% to 8.61 trillion yen ($57 billion).
In contrast, Japan saw a nearly 17% year-on-year increase in imports in January. Many businesses have been ramping up exports in anticipation of tariffs that may be imposed by the U.S. under Trump’s administration.
Higher U.S. tariffs on steel and aluminum have already been implemented, but the most significant concern for Japan’s economy will be the auto tariffs set to take effect next month. Japanese officials have been requesting an exemption from the Trump administration, emphasizing Japan’s importance as a key trading partner and ally of the United States.
Japan’s exports to the U.S. grew by 10.5% in February, while imports from the U.S. dropped 2.7% compared to the previous year, resulting in a trade surplus of 918.8 billion yen ($6.2 billion).
Exports to Asia surged by around 16%, while those to Europe declined by 4.5%.
The increase in exports was largely driven by food, machinery, and vehicles.
Imports from the Middle East decreased as oil prices fell.
Additionally, Japan’s central bank decided to keep its benchmark interest rate steady at 0.5%, as expected. The central bank has been gradually raising rates from below zero to combat rising inflation. However, uncertainty around Trump’s policies has raised concerns about the global economic outlook and trade.
