Japan's US Exports Plummet as Trump Tariffs Bite, Trade Surplus Shrinks

• Japan's exports to the US dropped 11.1% in December and over 4% in 2025 due to Trump's tariffs.
• Tokyo's trade surplus with Washington declined 12.6% to 7.5 trillion yen ($47 billion) in 2025.
• Reduced car and auto parts exports, alongside increased imports of LPG, cereals, and power-generating machines, contributed to the shrinking surplus.
• December saw an 11.1% fall in exports to 1.81 trillion yen ($11.4 billion) and a 31.7% surplus reduction.
• Despite a trade deal lowering tariffs to 15% from 25%, officials deem them still high, especially for the auto sector.

Why It Matters: Trump's tariffs significantly impacted Japan's exports to the US, leading to a shrinking trade surplus.