Japan Posts September Trade Deficit Amid Rising Imports

Japan’s trade balance took a hit in September, with the nation posting a deficit of 234.6 billion yen ($1.54 billion), according to the Finance Ministry’s preliminary data released Wednesday. This marks a continuing challenge for Asia’s third-largest economy as global demand patterns shift.

Exports in September grew 4.2 percent from the same month last year, reflecting steady demand for Japanese vehicles and machinery abroad. Meanwhile, imports rose 3.3 percent, driven by higher energy costs and a rebound in raw material shipments.

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The trade shortfall adds to a wider trend in the first half of fiscal 2025. Between April and September, Japan accumulated a deficit of 1.22 trillion yen, signaling pressure on the nation’s trade-led growth model. Analysts note that while export growth is positive, rising imports—particularly energy and intermediate goods—are weighing heavily on the balance sheet.

Experts suggest that Japan’s trade deficit is influenced not only by global energy prices but also by fluctuations in demand from major trading partners such as China and the United States. The yen’s value against the dollar also plays a role, as a stronger yen can make exports less competitive while making imports cheaper.

Economists highlight that sustained deficits could impact Japan’s current account and pressure policymakers to seek measures that balance import costs with export growth.