Japan's exports hit a record high last year and may be due in part to companies anticipating President Donald Trump's tariff threats, according to reports.
Japan, which has the world's third-largest economy, saw exports soar to 107.9 trillion yen ($691 billion) for 2024, rising past the 100 million yen mark for the second straight year, the Associated Press reported, citing figures from Japan's Finance Ministry.
The report said companies in several countries may be stepping up exports as Trump mulls 25% tariffs on goods from Mexico and Canada by Feb. 1. He's also considering tariffs of 10% on goods from China.
Bloomberg reported that Japan's exports grew in response to a weaker yen and as businesses sought more information about Trump's tariff plans.
The yen averaged 152.48 per dollar in December, 3.8% weaker than the year prior, Bloomberg reported.
"Exports have been lacking strength. The weaker yen is pushing up the value of exports, but the volume is falling," Yuichi Kodama, economist at Meiji Yasuda Research Institute, told the business site.
"Companies are waiting to see what the Trump administration's tariff policy will be. There is of course a risk that exports will decline if tariffs are actually imposed," Kodama said.
At the same time, Japan's trade deficit fell 44% from a year earlier.
Bloomberg pointed out that Japan had a trade deficit of 5.3 trillion yen, but a 8.6 trillion yen surplus with the United States, which could become a source of friction with Trump who dislikes Washington having a trade deficit with any other nation.
Japan's Foreign Minister Takeshi Iwaya attended Trump's inauguration but did not discuss the potential tariffs with administration officials.
He had said that Japan is expected to have trade talks with Trump, Bloomberg reported.
