Japan Imports YoY

Japan’s imports fell 7.7% year-on-year to a three-month low of JPY 8,772.60 billion in May 2025, marking the sharpest drop since January 2024 and accelerating from a 2.2% decline in the previous month. The contraction exceeded market expectations for a 6.7% decrease, due to lackluster domestic demand and the impact of rising U.S. tariffs. Imports from the U.S. slumped 13.5%, while purchases also shrank from China (-2.2%) and ASEAN countries (-11.1%). Arrivals from the Middle East tumbled 18.5%, partly due to lower energy imports, notably crude oil and LNG. In contrast, imports from the EU rose 7.5% while shipments from Russia surged 12.5%. During the G7 summit in Canada, PM Shigeru Ishiba met with U.S. President Donald Trump. Although no trade deal was reached, both sides agreed to continue talks at the ministerial level. Ishiba has rolled out measures to help households and businesses cope with tariff pressures and is also considering cash handouts as an additional form of relief.