TOKYO (Realist English). Japan’s exports jumped 16.8% year on year in January, marking their fastest expansion since November 2022 and significantly exceeding market expectations, government data showed Wednesday.
The increase was well above December’s 5.1% rise and surpassed the 12% growth forecast in a Reuters survey of economists. The surge was driven primarily by stronger shipments to Asia and Western Europe.
Exports to China, Japan’s largest trading partner, climbed 32% in January after a 5.6% gain the previous month. The sharp increase came despite ongoing diplomatic tensions between Tokyo and Beijing following remarks by Prime Minister Sanae Takaichi on Taiwan.
By contrast, exports to the United States — Japan’s second-largest trading partner — fell 5%, following an 11.1% drop in December. Regionally, shipments to Asia rose nearly 26%, while exports to Western Europe expanded by more than 25%, more than compensating for a 3.3% decline in North America.
By sector, food exports surged 31.3%, electrical machinery — including semiconductors — increased 27.3%, and machinery rose 14.3%. Transport equipment, which accounts for over one-fifth of Japan’s total exports and includes automobiles and auto parts, edged up 0.8%. The segment has faced pressure amid U.S. tariff measures.
Financial markets reacted positively. The Nikkei 225 gained 0.9%, while the broader Topix index advanced 1.26%. The yen strengthened slightly to 153.43 per dollar, and yields on benchmark 10-year Japanese government bonds slipped by one basis point to 2.119%.
Imports fell 2.5% year on year in January, defying expectations of a 3% increase and reversing December’s 5.1% rise.
The strong start to the year follows a slowdown in 2025, when export growth eased to 3.1%, down from 6.2% in 2024. Japan’s economy expanded just 0.1% year on year in the fourth quarter, with net exports subtracting 0.8 percentage points from growth. For 2025 as a whole, GDP grew 1.1%, also weighed down by trade performance.
Exports weakened in mid-2025 amid concerns over U.S. tariffs but rebounded toward year-end after Tokyo and Washington agreed to reduce duties to 15% under a bilateral trade deal.
On Tuesday, the United States announced $36 billion worth of projects expected to be financed by Japan as part of its $550 billion U.S. investment commitment. The initiatives include an oil export facility in Texas, an industrial diamond plant in Georgia, and a natural gas power station in Ohio.
“Our MASSIVE Trade Deal with Japan has just launched!” U.S. President Donald Trump wrote on Truth Social, adding that Japan had begun implementing the first tranche of investments.
Japan’s Economy Minister Ryosei Akazawa said last week that Tokyo aims to finalize the initial projects before a planned meeting between Takaichi and Trump. The meeting was announced shortly before Japan’s Feb. 8 Lower House election, in which Takaichi led the ruling Liberal Democratic Party to a decisive victory.
