Thu Apr 17 07:06:14 UTC 2025: ## Japan Records Trade Deficit Despite Surplus with US Amidst Tariff Tensions

**Tokyo, April 17, 2025** – Japan reported a ¥5.2 trillion ($37 billion) trade deficit for the fiscal year ending March 2025, marking the fourth consecutive year of deficits. However, the country simultaneously registered a substantial ¥9 trillion ($63 billion) surplus in trade with the United States. This surplus comes despite escalating trade tensions with the U.S. and the threat of increased tariffs.

U.S. President Donald Trump’s previously announced 24% tariff on Japanese imports has been temporarily suspended for 90 days following market anxieties, but existing tariffs on cars, auto parts, steel, and aluminum remain a significant challenge for Japan. These tariffs, along with a 10% baseline tariff, are impacting Prime Minister Shigeru Ishiba’s administration.

While Japan’s annual exports increased by 5.9% year-on-year, boosted by strong sales of computer chips and vehicles, and a rise in tourism-related exports, a weaker yen inflated the cost of imports, leading to the overall deficit. March saw a trade surplus of ¥544 billion ($4 billion), representing the sixth consecutive month of gains, although growth slowed compared to February. Exports to the U.S. rose by 3%, while Asian exports showed mixed results, with increases in shipments to Hong Kong, Taiwan, and South Korea, and declines to China. Analysts suggest this shift reflects efforts to avoid U.S. tariffs. The possibility of Japan making concessions, such as increasing American rice imports, amidst recent rice shortages and rising prices, has been raised. Japanese negotiators are currently in Washington to address these trade concerns with U.S. officials.

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