That dollar amount results from a -4.6% drop compared to $752.1 billion in 2022.
From 2019 to 2023, the overall value of Japanese exported goods grew by a modest 1.7% from $705.8 billion.
Known as the Land of the Rising Sun, Japan is a major economic and political power in Asia. Mainland China was the number one purchaser of Japanese export products during 2023.
Applying a continental perspective, 56.4% of Japanese exports by value was provided to Asian countries while 23.5% was sold to importers in North America. Japan sent another 13.4% worth of goods to Europe.
Smaller percentages went to buyers in Oceania led by Australia and New Zealand (3%), Latin America (2.4%) excluding Mexico but including the Caribbean, then Africa (1.4%).
Japan’s Top Trading Partners
Below is a list showcasing 25 of Japan’s top trading partners, countries that imported the most Japanese shipments by dollar value during 2022. Also shown is each import country’s percentage of total Japanese exports.
- United States: US$144.8 billion (20.2% of total Japanese exports)
- China: $126.2 billion (17.6%)
- South Korea: $46.9 billion (6.5%)
- Taiwan: $42.9 billion (6%)
- Hong Kong: $32.5 billion (4.5%)
- Thailand: $29.4 billion (4.1%)
- Germany: $19.3 billion (2.7%)
- Singapore: $18.8 billion (2.6%)
- Vietnam: $17.1 billion (2.4%)
- Australia: $16.8 billion (2.3%)
- India: $15.9 billion (2.2%)
- Indonesia: $14.5 billion (2%)
- Malaysia: $13.9 billion (1.9%)
- Netherlands: $13.4 billion (1.9%)
- Mexico: $13.1 billion (1.8%)
- United Kingdom: $12.2 billion (1.7%)
- Canada: $10.9 billion (1.5%)
- United Arab Emirates: $10.4 billion (1.4%)
- Philippines: $10.1 billion (1.4%)
- France: $7.1 billion (1%)
- Belgium: $6.4 billion (0.9%)
- Saudi Arabia: $6.3 billion (0.9%)
- Italy: $6.1 billion (0.8%)
- Switzerland: $5.3 billion (0.7%)
- Brazil: $4.2 billion (0.6%)
Roughly nine-tenths (89.8%) of total Japanese exports in 2023 was delivered to the above 25 trade partners.
The fastest-growing top importers to increase purchases from Japan were Switzerland (up 27.7% from 2022), Canada (up 25.8%), Saudi Arabia (up 24.1%), United Arab Emirates (up 21.6%) and Mexico (up 18.6%).
The severest decliners were mainland China (down -13.3% from 2022), South Korea (down -13.8%), Malaysia (down -15.9%), Singapore (down -16.4%), Philippines (down -17.2%), and Taiwan (down -18.3%).
Countries Causing Worst Japanese Deficits
Japan recorded an overall -US$68.3 billion trade deficit for 2023, reducing by -55.4% compared to -$153 billion worth of red ink in 2022.
As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.
It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.
In 2023, Japan incurred the highest trade deficits with the following countries.
- Australia: -US$48.7 billion (country-specific trade deficit in 2023)
- mainland China: -$47.8 billion
- Saudi Arabia: -$28.1 billion
- United Arab Emirates: -$26.5 billion
- Indonesia: -$10 billion
- Vietnam: -$8.6 billion
- Qatar: -$7.6 billion
- Kuwait: -$7.2 billion
- Brazil: -$6.8 billion
- Malaysia: -$6.2 billion
Among Japan’s trading partners that cause the greatest negative trade balances, Japanese deficits with Vietnam (up 10.1%), mainland China (up 7%) and Brazil (up 0.3%) grew from 2022 to 2023.
Countries Generating Best Japanese Surpluses
Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.
In 2023, Japan incurred the highest trade surpluses at the expense of the following countries.
- United States of America: US$61.2 billion (country-specific trade surplus in 2023)
- Hong Kong: $31 billion
- South Korea: $15.9 billion
- India: $10.3 billion
- Singapore: $10.2 billion
- Netherlands: $10.1 billion
- Mexico: $7.4 billion
- Taiwan: $7.3 billion
- United Kingdom: $5.1 billion
- Thailand: $3.6 billion
Among Japan’s trading partners that generate the greatest positive trade balances, Japanese surpluses with Mexico (up 61%), India (up 36.9%) and the United States of America (up 23.7%) grew at the fastest pace from 2022 to 2023.
These positive cashflow streams clearly indicate Japan’s competitive advantages with the above countries, but also represent key opportunities for Japan to develop country-specific strategies to optimize its overall position in international trade.
Companies Servicing Japanese Trading Partners
According to the Japan Import Export Directory, the following are examples of entrepreneurial companies that ship products from Japan to its trading partners around the globe. Shown within parenthesis is the product category that the Japanese business specializes in.
- Aiza Corporation Japan (consumer electronics)
- Akasaka Diesels Limited (marine engines, generators)
- Aktio Corp. (construction equipment)
- Fuji Latex Co., Ltd. (shock absorbers)
- Japan Algae Co., Ltd. (dietary supplements)
- Kiramek, Inc. (vehicle security products)
- Kyodo Co., Inc. (steel)
- Ochadokoro Sanwa (Japanese Green tea)
- TMO International Limited (gold, gemstones)
- Whn Co., Ltd. (new/used cars)
See also Japan’s Top 10 Imports, Japan’s Top 10 Exports, Top Japanese Trade Balances and Japan’s Top 10 Major Export Companies
Research Sources:
Central Intelligence Agency, The World FactbookCountry Profiles. Accessed on March 29, 2024
IMPORTERS.com The Online Market for G20 Importers, Japan Import Export Directory. Accessed on March 29, 2024
International Monetary Fund, Exchange Rates selected indicators (National Currency per U.S. dollar, period average). Accessed on March 29, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on March 29, 2024
International Trade Centre, Trade Map. Accessed on March 29, 2024
Investopedia, Net Importer Definition. Accessed on March 29, 2024