Tokyo Container Terminal is seen in Tokyo, Feb. 19, 2025. (AP File Photo)
Japan’s trade deficit reached 2.81 trillion yen ($17.8 billion) for the first fiscal half, according to government data released on Oct. 21, as the war in Iran sent oil import prices soaring.
The Finance Ministry’s preliminary data showed that Japan’s exports for the April-September period grew 18.4 percent from the same period the previous year to 63.5 trillion yen, while imports soared to 66.3 trillion yen, up 20.4 percent year-over-year.
Both were record highs for Japan. The soaring price of oil affects a wide range of sectors, including plastic goods and shipping costs.
Resource-poor Japan imports virtually all its oil and has relied on access to the Strait of Hormuz in the Middle East for its oil shipments. That’s now basically blocked, and Japan has had to pay more to get shipments from other routes.
Brent crude, the international standard, has soared from $70 a barrel in February to about $100 a barrel lately, after shooting up to above $110 a barrel in recent months. Analysts say prices are unlikely to ease soon.
For the month of September, Japan’s trade deficit totaled 536.6 billion yen, marking the fifth month of deficits, but down from 1.1 trillion yen in August.
Japan’s September imports grew 18.9 percent from the previous year, while exports rose 16.7 percent.
One sore point is the weakening yen, which drives up the cost of imports. The U.S. dollar is lately trading at 150-yen levels.
