Japan’s Exports Surge 6% in November, US Shipments Rebound
In November, Japan’s exports increased by 6 per cent compared to the previous year, marking a notable rise in shipments to the United States for the first time since March. This shift comes as uncertainties surrounding tariffs have diminished following a trade agreement with the Trump administration. The preliminary data released Wednesday indicated that Japan’s total imports increased by 1.3 percent last month compared to the same period a year earlier, resulting in a surplus of 322.2 billion yen (approximately USD 2.1 billion). Exports to the US increased by almost 9 percent compared to the previous year, with shipments of cars, chemicals, and cameras compensating for the decreases in machinery and iron and steel. Imports of US oil saw a nearly threefold increase, accompanied by significant rises in the imports of grain and various food products.
Japan’s agreement on tariffs with President Donald Trump’s administration, which established the baseline import duty for most products at 15 per cent instead of the previously planned 25 per cent tariff, contributed to an 8 per cent increase in passenger car shipments when assessed by the number of vehicles. However, the value of those cars, trucks, and buses increased by just 1.5 percent, indicating the hesitance of automakers to transfer the burden of higher tariffs onto consumers. Imports from the US increased by over 7 percent, while Japan recorded a trade surplus of 739.8 billion yen (USD 4.7 billion), reflecting an 11 percent rise compared to the previous year.
Japan’s exports to the European Union experienced a significant increase of approximately 20 per cent last month compared to the same period last year, driven by a rise in demand for machinery, vehicles, and various other manufactured goods. However, tensions with Beijing following Prime Minister Sanae Takaichi’s remarks regarding the defense of Taiwan had an impact, resulting in a 2.4 percent decline in exports to China due to reduced shipments of chemicals, machinery, and vehicles.
“Despite a nascent recovery in trade with the US, its largest trading partner, higher tariffs are likely to continue to weigh on exports,” Norihiro Yamaguchi said in a report. He forecast that Japan’s exports will likely improve in the coming year. Yamaguchi stated, “Spillovers from robust US AI-related spending will likely support exports as well.”
