Japan's Ministry of Finance released preliminary trade statistics for June 2025, revealing significant developments in the country's external trade position. The trade balance showed a deficit of 682.3 billion yen, marking the third consecutive monthly deficit. This represents a substantial deterioration from the previous year's June deficit of 423.1 billion yen. Exports totaled 8.94 trillion yen, increasing by 5.2% year-on-year, driven primarily by strong shipments of semiconductor manufacturing equipment (+18.3%) and automobiles (+7.1%). However, export growth has moderated compared to earlier months, reflecting softening global demand. Imports reached 9.62 trillion yen, surging by 9.8% year-on-year. The increase was led by energy imports, with crude oil imports rising 22.4% and LNG imports up 15.7%, primarily due to higher commodity prices rather than volume increases. By region, exports to China declined by 2.1%, the first decrease in six months, while exports to the US remained robust at +8.4%. The report notes that the widening trade deficit reflects Japan's structural dependence on energy imports amid elevated global commodity prices. The outlook suggests continued pressure on the trade balance, though a gradual improvement is expected as energy prices stabilize and export competitiveness improves with the weaker yen.
June 2025 Trade Statistics (Flash Report) - Overview and Key Points
Overview
Japan's Ministry of Finance released preliminary trade statistics for June 2025, revealing significant developments in the country's external trade position. The trade balance showed a deficit of 682.3 billion yen, marking the third consecutive monthly deficit. This represents a substantial deterioration from the previous year's June deficit of 423.1 billion yen. Exports totaled 8.94 trillion yen, increasing by 5.2% year-on-year, driven primarily by strong shipments of semiconductor manufacturing equipment (+18.3%) and automobiles (+7.1%). However, export growth has moderated compared to earlier months, reflecting softening global demand. Imports reached 9.62 trillion yen, surging by 9.8% year-on-year. The increase was led by energy imports, with crude oil imports rising 22.4% and LNG imports up 15.7%, primarily due to higher commodity prices rather than volume increases. By region, exports to China declined by 2.1%, the first decrease in six months, while exports to the US remained robust at +8.4%. The report notes that the widening trade deficit reflects Japan's structural dependence on energy imports amid elevated global commodity prices. The outlook suggests continued pressure on the trade balance, though a gradual improvement is expected as energy prices stabilize and export competitiveness improves with the weaker yen.