Japan exports growth surges nearly 17% in January as shipments to China surge
Containers at a shipping terminal in Yokohama, Japan on Oct. 18, 2021. Japan’s trade deficit surged in September as imports overwhelmed export growth.
Kiyoshi Ota | Bloomberg | Getty Images
Japanese exports saw a significant increase of 16.8% year on year in January, surpassing market expectations and marking the fastest growth rate since November 2022. The surge was driven by higher shipments to Asia and Western Europe.
Notably, exports to China, Japan’s largest trading partner, soared by 32%, while shipments to the U.S. declined by 5%. The growth in exports was also supported by a substantial increase in shipments to Asia and Western Europe.
Key commodities that experienced growth in exports included food, machinery, and electrical machinery. However, the transport equipment sector, which includes cars and auto parts, faced challenges due to U.S. tariffs.
On the import side, there was a 2.5% decrease year on year in January, contrary to expectations of a 3% rise. The positive performance in outbound shipments is expected to boost the Japanese economy following a sluggish year in 2025.
Looking ahead, Japan’s trade relations with the U.S. are set to improve with significant investment projects in the pipeline. The recent trade deal between the two countries has paved the way for increased cooperation and economic growth.
