Japan Imports Fall Less than Expected

Japan's imports declined 7.5% yoy in July 2025, the fourth contraction so far this year, beating market forecasts of a 10.4% fall and reversing a marginally revised 0.3% rise in June.

The latest figures highlighted Tokyo’s ongoing support measures to sustain domestic demand, including minimum wage hikes, cash aid for low-income households, utility subsidies, and regional funding.

Analysts noted that U.S.

tariffs are weighing on bilateral trade, with reduced flows adding pressure to Japan’s external balance.

Still, the softer-than-expected fall in imports points to resilience in domestic consumption, though a weak yen continues to inflate costs, particularly for energy and food.

Imports from the U.S.

slipped 0.8%, while purchases from China (-3.9%), ASEAN (-8.8%), and the Middle East (-18.1%) also weakened.

By contrast, arrivals from the EU rose 6.6% and those from Russia surged 90.2%, driven largely by energy imports as Japan seeks to diversify supplies despite Western sanctions.