Japan’s exports rise as world awaits Trump tariffs

TOKYO – Japan’s exports rose for a third straight month in December on the back of a weaker yen, as businesses waited for further clarity on likely US trade policy in President Donald Trump’s second term.

Exports measured in value gained 2.8 per cent from a year ago, led by chipmaking machinery and semiconductor parts, the Ministry of Finance reported on Jan 23.

That beat the consensus estimate of a 2.4 per cent increase. Imports increased 1.8 per cent, led by calculation machinery and related goods. 

The yen averaged 152.48 per US dollar in December, 3.8 per cent weaker than a year earlier, the report said.

A weaker yen tends to help exporters become more competitive, while it makes imports of energy and food more expensive.

The trade balance unexpectedly swung to a positive reading for the first time in six months, with a surplus of 130.9 billion yen (S$1.1 billion). 

By region, shipments to the US fell 2.1 per cent, while those to China declined 3 per cent. Exports to Europe rose 0.5 per cent and increased by 5.8 per cent to Asia. 

Before the report was released, analysts at SMBC Nikko Securities wrote in a note that exports probably got a lift from last-minute demand anticipating fresh tariffs under Mr Trump. 

Following his inauguration this week, Mr Trump said he is

considering enacting levies of as much 25 per cent

on goods from Mexico and Canada by Feb 1. He could also hit China with 10 per cent tariffs on the same day. BLOOMBERG