Japan's $63B Trade Surplus with US Raises Tariff Negotiation Stakes

Japan reported a global trade deficit of 5.2 trillion yen ($37 billion) for the fiscal year ending in March, marking its fourth consecutive annual deficit, mainly due to increased imports and a weaker yen. Despite the overall deficit, Japan's trade surplus with the United States surged to 9 trillion yen ($63 billion), a figure that has become a focal point in ongoing trade negotiations and tariff disputes with the Trump administration. U.S. President Trump has threatened tariffs as high as 24% on Japanese goods, though a partial 90-day suspension has been implemented following negative market reactions, leaving Japan still facing significant duties on cars, auto parts, steel, and aluminum. Strong exports of vehicles, computer chips, and spending by foreign tourists contributed to Japan's export growth, which rose 5.9% over the year. In March alone, Japan saw a trade surplus of 544 billion yen ($4 billion), with exports climbing nearly 4% from a year earlier. Analysts suggest Japan may offer concessions such as increased imports of American rice to ease trade tensions.