TOKYO (AP) — Japan posted a trade deficit for the fifth straight year in 2025, according to government data released Thursday, as exports were hit by U.S. President Donald Trump’s tariffs and a diplomatic rift with neighboring China.

For the full year, Japan logged a 2.65 trillion yen ($17 billion) trade deficit, the Finance Ministry reported in its preliminary data.

That was nearly 53% smaller than the deficit Japan marked the previous year. Exports for the year rose 3.1%, while imports remained about the same on-year, gaining less than 1%.

For the month of December, Japan recorded a 105.7 billion yen ($669 million) trade surplus.

The monthly surplus was 12% smaller than what was racked up a year ago. Imports grew 5.3% from the same month a year ago, while exports grew 5.1%.

By nation, exports to the U.S. declined 11% in December, while exports to Britain, Africa and some other Asian countries rose. Imports from Europe were strong.

The United States has imposed a 15% tariff on most imports from Japan, a reduction from the 25% that Trump initially proposed but an increase from before he took office a year ago.

Another looming concern is the impact on Japanese manufacturing, including automakers, from China’s curbs on exports of rare earths.

The controls were announced by Beijing after Prime Minister Sanae Takaichi suggested a Chinese move on Taiwan could prompt a Japanese military response.

Takaichi has called a snap elections for next month in hopes her party can gain strength in Parliament while she is popular with the public.

Overall, Japan’s economy has held up, despite grumbling from the public about rising prices and stagnant wages. The benchmark Nikkei on the Tokyo Stock Exchange keeps hitting new records.

___

Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama