Japan’s Trade Deficit Narrows Sharply on Semiconductor Exports

Jan 22, 2026 | News On Japan

TOKYO - Japan’s trade balance remained in the red for a fifth consecutive year in 2025, but the deficit narrowed sharply as exports, led by semiconductors, rose to a record high.

According to Japan’s annual trade statistics released by the Ministry of Finance, the trade balance for 2025 totaled a deficit of 2.6507 trillion yen, marking the fifth straight year of red ink.

The deficit, however, shrank by about 53% from the previous year as exports increased and reached the highest level on record, supported by growth in shipments of semiconductors and other products.

Exports to the United States fell for the first time in five years, with so-called Trump tariffs weighing on demand. Auto exports to the U.S. dropped 11.4%, while Japan’s trade surplus with the U.S. declined 12.6%.

The drop in Japan’s trade surplus with the U.S. marked the second consecutive year of decline.

Source: TBS

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