Japan reported a slower-than-expected increase in exports for December 2025, expanding just 5.1% compared to the previous year. Weaker demand from the United States weighed on the headline figure, falling short of market forecasts and signaling ongoing challenges for Japan’s export sector.
Export volumes from Japan to the United States registered an 11.1% decrease year-on-year in December, following a brief recovery in November attributed to a September bilateral trade agreement. This agreement had established a 15% base tariff on most goods traded between the two countries. Despite that earlier rebound, U.S.-bound shipments slumped again at year’s end.
In contrast, exports to Asian markets showed substantial strength. Deliveries to the broader Asia region climbed 10.2%, supported by robust demand for semiconductor and electronic products, particularly those related to data center infrastructure and artificial intelligence applications. Trade with mainland China, Japan’s leading trading partner, increased by 5.6%, while exports to Hong Kong rose sharply by 31.1%.
On the import side, Japan recorded a 5.1% annual rise in December imports, a marked acceleration from the 1.3% growth seen the previous month and ahead of analyst estimates of a 3.6% increase. The month’s trade balance showed a surplus of JPY 105.7 billion, which fell below analyst expectations of a JPY 356.6 billion surplus.
For the entire year 2025, Japanese exports advanced 3.1%, reflecting a softer gain compared to the 6.2% growth achieved in 2024. Annual exports to both mainland China and the United States declined by 0.4% and 4.1% respectively, underscoring persistent headwinds in key markets. Nevertheless, annual shipments to Hong Kong and Taiwan increased by 17.8% and 15.1%, providing partial support to overall export performance.
