Japan’s total trade balance for all products equaled a -US$15.2 billion deficit for 2019, down -82.6% from the -$87.4 billion in red ink for 2012. Year over year, Japan’s -$15.2 billion trade deficit in 2019 represents a 49.6% increase from $10.2 billion in black ink one year earlier.
To put Japan’s trade deficit metric for 2019 into perspective, the country’s total external debt encompassing both public and private red ink equaled -$4.199 trillion at March 2019. Japan’s external debt is the equivalent of almost 300 times its negative international trade balance.
Japan’s Top Trade Balances by Product and Country
Product+
The following 10 leading products generated a surplus subtotal of $188.6 billion for Japan in its global trade during 2019. Metrics listed below highlight Japan’s strongest competitive advantages over worldwide trading partners.
- Cars: US$85.8 billion (Down -0.8% since 2012)
- Automobile parts/accessories: $24.6 billion (Down -25.3%)
- Machinery for making semi-conductors: $18.9 billion (Up 44.2%)
- Cruise/cargo ships, barges: $13.5 billion (Down -36%)
- Heavy machinery (e.g. bulldozers, excavators): $9.6 billion (Down -15.2%)
- Integrated circuits/microassemblies: $9.3 billion (Down -29.4%)
- Trucks: $8 billion (Down -34.6%)
- Miscellaneous machinery: $6.5 billion (Down -25.7%)
- Gold (unwrought): $6.3 billion (Up 10.2%)
- $6.1 billion (Down -23.5%)
Japan was able to grow its trade surplus with two of the above products over the latest 7-year period: up 44.2% for machinery for making semi-conductors and up 10.2% with respect to unprocessed gold.
Product-
The 10 major products below accumulated a deficit subtotal of -$290.3 billion for Japan in international trade during 2019. Japan has demonstrated the severest competitive disadvantages in the exports and imports of the following commodities.
- Crude oil: -US$73 billion (Down -52.3% since 2012)
- Petroleum gases: -$44.7 billion (Down -49.2%)
- Coal, solid fuels made from coal: -$23.2 billion (Down -20.2%)
- Phone system devices including smartphones: -$21.3 billion (Down -2.4%)
- Computers, optical readers: -$15.6 billion (Up 6.7%)
- Medication mixes in dosage: -$11.9 billion (Down -18.6%)
- Iron ores, concentrates: -$10.9 billion (Down -43.2%)
- Copper ores, concentrates: -$8.3 billion (Down -27.9%)
- Blood fractions (including antisera): -$8.26 billion (Up 78.2%)
- Miscellaneous aircraft, spacecraft (e.g. helicopters, launchers): -$5.9 billion (Up 7.8%)
Three top products grew in terms of Japan’s red ink from 2012 to 2019 namely blood fractions including antisera (up 78.2%), miscellaneous aircraft or spacecraft (up 7.8%) and computers including optical readers (up 6.7%).
Leading product trade deficit shrinkage for Japan since 2012 were crude oil (down -52.3%), petroleum gases (down -49.2%), iron ores and concentrates (down -43.2%) then copper ores and concentrates (down -27.9%).
Country+
In 2019, Japan generated a surplus subtotal worth $166.8 billion with the following 10 trading partners.
- United States: US$59.1 billion (Down -7.4% since 2012)
- Hong Kong: $31.7 billion (Down -20.1%)
- South Korea: $16.6 billion (Down -20.7%)
- Taiwan: $16.1 billion (Down -26.4%)
- Singapore: $12.4 billion (Down -14.9%)
- Netherlands: $8.7 billion (Down -22.3%)
- Panama: $6 billion (Down -57%)
- United Kingdom: $5.8 billion (Down -3.5%)
- India: $5.6 (Up 56.3%)
- Thailand: $4.8 billion (Down -75.9%)
Japan increased its surplus with just one of the above-listed countries, namely India thanks to a 56.3% gain.
Thailand (down -75.9%) and Panama (down -57%) led the reductions in Japan’s country-specific surplus over the 7-year period.
Country-
Japan lost money in its international trade with 89 countries or territories. Topping the list, the following 10 trade partners created a -$150.4 billion deficit subtotal in 2019 from exchanging exports and imports with Japan.
- China: -US$34.5 billion (Down -22.1% since 2012)
- Australia: -$31 billion (Down -18.6%)
- Saudi Arabia: -$22.5 billion (Down -51.7%)
- United Arab Emirates: -$19 billion (Down -45.7%)
- Qatar: -$12 billion (Down -65%)
- Russia: -$7.2 billion (Down -12.7%)
- Italy: -$7 billion (Up 18.3%)
- Vietnam: -$6 billion (Up 37.9%)
- Ireland: -$5.9 billion (Up 67.6%)
- France: -$5.2 billion (Down -15.7%)
Japan’s country-specific deficits increased with three among its top trade partners namely Ireland, Vietnam and Italy.
See also Japan’s Top 10 Exports, Japan’s Top Trading Partners, Japan’s Top 10 Imports and Japan’s Top 10 Major Export Companies
Research Sources:
Central Intelligence Agency, The World FactbookCountry Profiles. Accessed on January 31, 2020
External Debt (for specified countries), CEIC Data. Accessed on January 31, 2020
International Trade Centre, Trade Map. Accessed on January 31, 2020
Investopedia, Net Exports Definition. Accessed on January 31, 2020
Richest Country Reports, Key Statistics Powering Global Wealth. Accessed on January 31, 2020