Japan’s exports grew 4.2% year-on-year in February, showing a notable slowdown after reaching a more than three-year high in January.
Even so, the increase exceeded economists’ expectations of a 1.6% rise, according to a Reuters poll, though it was significantly lower than January’s sharp 16.8% surge.
Exports to mainland China, Japan’s largest trading partner, declined 10.9%, while shipments to the United States fell 8%. The value of auto exports to the U.S.—Japan’s top export category—also dropped by 14.8%.
Looking ahead, exports to the U.S. could face further pressure after Washington initiated Section 301 investigations, which may result in the return of tariffs.
This follows February’s Supreme Court decision to strike down Trump’s “reciprocal” tariffs.
Despite weaker demand from its key partners, Japan saw stronger export performance in other regions. Shipments to Hong Kong jumped 32.3% compared to a year earlier.
Exports to a group of 11 Southeast Asian nations, including Indonesia and Thailand, rose 5.1%. In fact, the total value of exports to this regional bloc surpassed shipments to mainland China, making it Japan’s second-largest export destination in February.
Exports to Western Europe also posted solid gains, rising 17.5%, supported by increased sales to Germany and the United Kingdom, which grew by 10.9% and 18.9%, respectively.
The overall export growth was driven in part by a 25.1% surge in semiconductor exports, while motor vehicle exports recorded a modest 2.5% year-on-year increase.
The data comes ahead of a Bank of Japan monetary policy meeting scheduled for Thursday, as well as a same-day meeting between Prime Minister Sanae Takaichi and U.S. President Donald Trump in the United States.
Meanwhile, Japan’s imports rose 10.2% in February—below expectations of an 11.5% increase, but a sharp turnaround from January’s 2.6% decline.
