Japan's exports rise 3.1% in 2025 despite US tariffs

Japan's exports grew 3.1% in 2025 from the previous year, led by electronic parts and food, according to a Finance Ministry report. Despite a decline in shipments to the United States—the first since the pandemic—due to tariffs from President Donald Trump, exports to Europe and Asia excluding China remained strong.

The Finance Ministry reported on Thursday that Japan's overall exports increased by 3.1% in 2025 compared to the previous year, primarily driven by electronic parts and food. Shipments to the United States fell 4.1%, the first decline since the pandemic and the worst since 2016 excluding that period, mainly due to cars and chipmaking machinery. Exports to China dipped 0.4%, while those to Europe and Asia excluding China held firm.

On a monthly basis, December marked the fourth consecutive rise in exports, supported by steady Chinese demand amid an ongoing diplomatic dispute that started last year. However, US-bound shipments dropped, led by automobiles.

This performance highlights the drag from US tariffs under President Donald Trump, which roiled trade relations. The drop in US exports underscores Japan's reliance on international trade even as other markets provided a buffer.

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Realistic image of Busan Port depicting South Korea's early January exports decline despite robust semiconductor shipments, with cranes, containers, and a data billboard.
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South Korea's exports down 2.3% in early January despite strong chip sales

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South Korea's exports fell 2.3 percent year-on-year in the first 10 days of January, despite robust semiconductor shipments. According to Korea Customs Service data, outbound shipments totaled $15.55 billion for the period. Weaker performance in automobiles, vessels, and steel products offset the gains.

Japan's exports jumped 16.8% in January from a year earlier, marking the biggest increase in more than three years. The surge was driven by strong Asian demand and front-loading shipments ahead of China's Lunar New Year holidays. While shipments to the U.S. fell, exports of semiconductors and electronic components rose sharply, boosted by artificial intelligence-related demand.

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Japan’s exports increased 6.1% in November from a year earlier, surpassing economists’ forecast of 5.0%, according to the Finance Ministry. Shipments to the U.S. rose 8.8% and to the EU 19.6%, offsetting a decline to China. The overall trade balance showed a surplus of ¥322.3 billion.

South Korea's exports grew 6.8 percent year-on-year to $43 billion in the first 20 days of December, driven by strong global demand for semiconductors. This marks an all-time high for the period, surpassing last year's record. While car and petroleum shipments declined, the trade surplus expanded to $3.8 billion.

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Government data showed Japan's household spending rose 2.9% year-on-year in November, defying forecasts of a 0.9% decline. The increase, driven by automobile-related expenses and dining out, indicates a steady recovery in private consumption.

Japan's green tea exports in the first 10 months of this year hit the highest level in over 70 years, driven by booming demand for matcha powder abroad and a weaker yen. Shipments rose 44 percent from the previous year to 10,084 tons. The United States led imports with 3,497 tons.

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An editorial calls for Japan to lead in preventing the free trade system from drifting as the United States appears set to relinquish its post-World War II role after 80 years. It warns of risks to financial markets from the Trump administration's aggressive tariffs and advocates expanding the CPTPP.

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