Honda vehicles are lined up at a vehicle storage yard at an industrial port, on the day U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports, in Yokohama, near Tokyo, Japan, July 23, 2025.
Kim Kyung-hoon | Reuters
Japan’s exports in November rose at their fastest rate in nine months this year, growing at 6.1% year on year, data from the country’s finance ministry released Wednesday showed.
The growth sharply beat expectations of an average 4.8% rise estimated by economists polled by Reuters, and was higher than the 3.6% seen in the previous month.
The export numbers were supported by a 23.6% increase in goods shipped to Western Europe, as well as an 8.8% rise in exports to the U.S., its second largest trading partner. This marks the first time that exports to the U.S. from Japan have increased since March.
Exports of automobiles fell 4.1% by value, but auto shipments to the U.S. posted a recovery, rising 1.5% year in year in November.
The data comes after revised GDP numbers for the third quarter showed that Japan’s economy contracted more than initially estimated, shrinking 0.6% quarter on quarter, and 2.3% on an annualized basis.
Shipments to mainland China fell 2.4%, but exports to Hong Kong jumped 11.4% compared to the same period the previous year. Exports of “foodstuff” to mainland China fell 5.9% by value.
In November, tensions between Japan and China rose after Japanese Prime Minister Sanae Takaichi said that a Chinese attempt to seize Taiwan by force could trigger an intervention by Japan’s military, leading to Beijing restricting imports of Japanese seafood.
Imports into Japan rose 1.3% in November, compared to expectations of a 2.5% rise.
Trade and diplomatic frictions aside, Japanese companies are positive on business growth, with the Bank of Japan’s Tankan survey showing that sentiment among Japanese companies mostly improved in the fourth quarter, especially among small manufacturers.
Jesper Koll, expert director at Tokyo-based financial services firm Monex Group, highlighted the growth in semiconductor and equipment exports, saying that the U.S.-led boom in tech spending is translating into growing exports of specialized machinery and equipment.
Exports of electrical machinery jumped 7.4%, and semiconductor-related exports surged 13% year on year, which Koll said is a “confirmation of Japan’s competitiveness in supplying machines that make machines.”
The market is underestimating the positive implications of the U.S. capex boom, much of what goes into the new data centers and AI hardware enablers and power centers is Made in Japan, and can only be made in Japan,” Koll added.