Japan Trade Surplus: Ideas Later.

Japan logs 57.3 billion yen trade surplus in Feb., helped by chip exports

Article source:  https://mainichi.jp/english/articles/20260318/p2g/00m/0bu/014000c

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TOKYO (Kyodo) -- Japan logged a trade surplus of 57.3 billion yen ($361 million) in February, helped by a rise in chip exports to other Asian countries, government data showed Wednesday, but the Iran conflict and concern over oil supply disruptions cloud the outlook.

Exports rose 4.2 percent to 9.57 trillion yen, up for the sixth consecutive month, while imports increased 10.2 percent from a year earlier to 9.51 trillion yen, both marking record highs for the month, the Finance Ministry said in a preliminary report.

With Japan's imports of chips and other electronic parts from other Asian countries also robust, the data showed the products, widely used in high-tech products, are becoming an increasingly active part of Japan's global trade, analysts said.

The latest trade data did not reflect developments after the launch of the U.S. and Israeli attacks on Iran on Feb. 28, a ministry official said, with the analysts predicting that rising oil costs could deal a blow to an economy heavily reliant on fuel imports.

The potential impact of disruptions in supplies of fuel and petroleum products on the trade balance will be closely monitored as the Japanese government has vowed to respond with all possible measures, the official said.

Takeshi Minami, chief economist at the Norinchukin Research Institute, said the impact of the Iran conflict on the trade balance is likely to be apparent from late March onwards, with the plunge in crude oil imports due to the effective closure of the Strait of Hormuz expected to affect Japanese businesses' output and trade.

"The government has released crude oil stockpiles and decided to provide fresh gasoline subsidies, but there is a possibility that the increases in energy prices going forward could hamper recovery in consumption," he said.

In the reporting month, Japan's exports to the United States fell 8.0 percent to 1.75 trillion yen, dropping for the third straight month, as shipments of motor vehicles declined 16.6 percent in value terms, weighed down by President Donald Trump's tariffs.

While import duties imposed on Japanese cars were lowered to 15 percent from 27.5 percent in September under a trade deal struck by Tokyo and Washington, they remained six times higher than the 2.5 percent tariff in place prior to Trump's return to the White House.

Japan remained in the red with China for the 59th straight month, logging a trade deficit of 967.3 billion yen in February.

Exports to the world's second-largest economy declined 10.9 percent to 1.37 trillion yen, and imports jumped 35.4 percent to 2.34 trillion yen, hitting a record high for the month.