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Japan exports beat forecasts with 4.2% growth in February, but China and U.S. demand slumps

Despite a 10.9% drop in exports to China and an 8% decline to the U.S., Japan's total exports rose 4.2% in February, supported by semiconductor and EU market gains.

  • Japan's exports grew 4.2% in February, surpassing the 1.9% forecast by Reuters, though marking a sharp slowdown from the 16.8% jump in January.
  • Demand slumped in key markets as exports to China fell 10.9% due to Lunar New Year holidays, while shipments to the U.S. dropped 8% amid a 14.8% retreat in car values.
  • Strong machinery and car demand boosted exports to the EU by 14%, while Japan's overall imports rose 10.2%, generating a trade surplus of 57.3 billion yen, or S$460 million.
  • New U.S. Section 301 investigations threaten further export declines, following the Supreme Court's February decision to strike down President Donald Trump's "reciprocal" tariffs.
  • Prime Minister Sanae Takaichi will meet Trump on Thursday, coinciding with a Bank of Japan monetary policy meeting as global markets face inflation risks from the war in Iran.
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Japan records trade surplus as export growth balances out weak China demand

Japan has recorded a trade surplus of 57.3 billion yen, or $360 million, in February, according to government data, reversing from a deficit a month earlier.

·United States
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Reuters broke the news in United Kingdom on Tuesday, March 17, 2026.
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