Trump's return risks trade tension with Japan as imbalance widens

Threatened tariffs cloud outlook for companies, with knock-on effects for economy

20241108N Tokyo port

Japan's exports to the U.S. grew roughly 40% between 2016 and 2023. © Reuters

CHIHIRO UCHIYAMA and YOHEI MATSUO, Nikkei staff writers

TOKYO -- Donald Trump's second term as U.S. president may bring economic friction with Japan over a trade surplus that has grown since his first term, creating uncertainty for an economy that is counting on corporate earnings to fuel wage growth.

The U.S. topped China to become Japan's largest export destination for the first time in four years last year, with exports totaling 20.3 trillion yen ($133 billion), according to Japanese trade data. The figure was up roughly 40% from 2016, when Trump was first elected.

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