Japan recorded a trade surplus with the United States of 585.11 billion yen (3.6 billion euros) in July, marking a 23.9% decrease compared to the previous year. Japanese exports to the world’s largest economy stood at 1.7 trillion yen (10.03 billion euros) during the month, down 10.1% from last year.
In July, Japan was subjected to a 10% base tariff imposed by U.S. President Donald Trump in April, while Japanese car exporters faced a separate 25% tariff.
On July 23, Japan and the United States reached a trade agreement after months of negotiations, under which Japan is expected to pay 15% tariffs and invest 550 billion dollars in the U.S.
The so-called “reciprocal tariffs,” as referred to by the White House, were set for Japan at 15%, lower than the previously announced 25%, representing the lowest rate imposed on countries with a trade surplus with the U.S.
The tariffs imposed by Washington on the automotive sector were also set at 15%, 10 percentage points lower than previously established, with no cap on the number of imported vehicles.
Globally, Japan’s exports decreased by 2.6% in July compared to July 2024, totaling 9.35 trillion yen (57.5 billion euros), while imports declined by 7.5% to 9.47 trillion yen (58.3 billion euros).
By country, Japan reported a deficit with China, its largest trading partner, of 609.156 million yen (3.750 million euros) in July, a reduction of 4.8% compared to the previous year.
With the European Union, its third-largest trading partner, Japan recorded a negative balance of 277.959 million yen (1.710 million euros), an increase of 57.1% from July 2024.
Japan reduced its deficit with Brazil by 28.3% from the previous year to 48.092 million yen (295.7 million euros), while the negative balance with Chile decreased by 8.8% to 85.350 million yen (524.9 million euros).
Conversely, Japan achieved a trade surplus with Mexico, amounting to 40.739 million yen (250.5 million euros), though this value is 58.2% lower than in July of the previous year.
