TOKYO (Kyodo) — Japan logged a 2.76 trillion yen ($18.2 billion) trade deficit in January, weighed down by increased imports of electronics, while a weaker yen also pushed up prices, government data showed Wednesday.
The trade balance returned to the red for the first time in two months. The deficit was 56.2 percent bigger than a year earlier, but it was still smaller than the record 3.54 trillion yen posted by the country in January 2023, the Finance Ministry said.
Exports rose 7.2 percent from a year earlier to 7.86 trillion yen, marking the fourth straight month of growth, as shipments of cars, ships and pharmaceuticals increased, according to a preliminary report by the ministry.
Imports expanded 16.7 percent to 10.62 trillion yen, increasing for the second consecutive month, as the country bought more smartphones and PCs from China and Taiwan.
The value of exports and imports both hit record highs for the month, with the yen’s depreciation affecting prices, the ministry said.
The average exchange rate for the yen in the month was 157.20 against the U.S. dollar, 9.2 percent weaker than a year earlier, the ministry said.
Japan had a 476.97 billion yen trade surplus with the United States as exports to the country rose 8.1 percent to 1.54 trillion yen, thanks to robust car shipments.
On U.S. President Donald Trump’s recent plan to increase tariffs on automobiles, a ministry official said it “will closely monitor the impact,” without elaborating.
Japan booked a 1.44 trillion yen trade deficit with China, marking the 46th consecutive month of red ink, as exports of chips and related manufacturing equipment to the world’s second-largest economy fell.
The trade deficit with China tends to increase in January as the country ramps up shipments to clear inventory before the Lunar New Year Holidays, the ministry said.
Trade with Asian nations, including China, resulted in a deficit of 1.21 trillion yen, falling into negative territory for the first time in 12 months, the report said.
A 403.47 billion yen trade deficit was reported with the European Union, remaining in the red for the 12th consecutive month. Drug imports from Ireland rose while exports of electric cars to the Netherlands slumped, according to the ministry.