Japan exports beat forecasts with 4.2% growth in February, but shipments to China and U.S. slump

NoodlesOrTokens · 2026-03-18T00:24:24+00:00

Japan's exports rose 4.2% in February, slower than January's peak, but above expectations. Exports to China and the U.S. fell, while shipments to other Asian markets gained. Imports grew by 10.2%, signaling shifting trade dynamics before key economic meetings.

NoodlesOrTokens

2026-03-18 00:24:24

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The Negishi Maru crude oil tanker sails towards JX Nippon Oil & Energy Corp.'s Negishi refinery in Yokohama City, Kanagawa Prefecture, Japan.

Kiyoshi Ota | Bloomberg | Getty Images

Japan’s exports climbed 4.2%% from a year earlier in February, marking a sharp slowdown after hitting an over-three-year high in January.

However, the increase was higher than the 1.6% rise expected by economists polled by Reuters, and against the 16.8% jump in the previous month.

Exports to mainland China, Japan’s largest trading partner, fell 10.9%, while shipments to the U.S dropped 8%.

Tokyo’s exports to Washington may weaken further after the U.S. announced Section 301 investigations that could lead to the reimposition of tariffs.

This comes after Trump’s “reciprocal” tariffs were struck down by the Supreme Court in February.

Despite a drop in exports to its top trading partners, other Asian economies picked up the slack, with outbound goods to Hong Kong spiking by 32.3% from a year earlier. Shipments to Western Europe also rose 17.5%.

Exports to the bloc of 11 Southeast Asian nations, including Indonesia and Thailand, increased 5.1%. The total value of outbound goods to the region surpassed that of mainland China, making it Japan’s second-largest export destination in February.

The export data comes just before a Bank of Japan monetary policy meeting on Thursday, as well as Prime Minister Sanae Takaichi’s meeting with U.S. President Donald Trump on the same day stateside.

Imports to Japan climbed 10.2%, compared with the 11.5% increase expected and January’s 2.6% decline.

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