Japan

Japan is currently the fourth largest export market for U.S. goods, and our fourth largest trading partner overall with over $205 billion in two-way goods trade. The United States also has a large services trade with Japan, totaling nearly $65 billion in two-way trade.

U.S.-Japan Trade Facts

U.S. goods and services trade with Japan totaled $273 billion in 2007 (latest data available). Exports totaled $170 billion; Imports totaled $170 billion. The U.S. goods and services trade deficit with Japan was $67 billion in 2007.

Japan is currently our 4th largest goods trading partner with $204 billion in total (two ways) goods trade during 2008. Goods exports totaled $65.1 billion; Goods imports totaled $139.3 billion. The U.S. goods trade deficit with Japan was $74.1 billion in 2008.

Trade in services with Japan (exports and imports) totaled $64.7 billion in 2007 (latest data available). Services exports were $40.2 billion; Services imports were $24.5 billion. The U.S. services trade surplus with Japan was $15.8 billion in 2007.

Exports

Japan was the United States' 4th largest goods export market in 2008.

U.S. goods exports to Japan in 2008 were $65.1 billion, up 3.9% ($2.4 billion) from 2007, up 22% from 1994 (the year prior to Uruguay Round). U.S. exports to Japan accounted for 5.1% of overall U.S. exports in 2008, down from 10.4% in 1994.

The top export categories (2-digit HS) in 2008 were: Optic and Medical Instruments ($6.8 billion), Aircraft ($6.5 billion) Machinery ($6.4 billion), Cereals (corn and wheat) ($5.9 billion), and Electrical Machinery ($5.2 billion).

U.S. exports of agricultural products to Japan totaled $13.3 billion in 2008, our 3rd largest export market. Leading categories include: coarse grains ($4.1 billion), red meats (fresh/chilled/frozen) ($1.9 billion), wheat ($1.6 billion) and soybeans ($1.4 billion).

U.S. exports of private commercial services* (i.e., excluding military and government) to Japan were $40.2 billion in 2007 (latest data available), 2.2% ($921 million) less than 2006 but 39.8% ($11.4 billion) greater than 1994 levels. Other private services (business, professional, and technical services), travel, and the royalties and license fees categories accounted for most of U.S. exports in 2007.

Imports

Japan was the United States' 4th largest supplier of goods imports in 2007.

U.S. goods imports from Japan totaled $139.3 billion in 2008, a 4.3% decrease ($6.2 billion) from 2007, but up 17% over the last 14 years. U.S. imports from Japan accounted for 6.6% of overall U.S. imports in 2008, down from 18.0% in 1994.

The five largest import categories in 2008 were: Vehicles ($52.7 billion), Machinery ($29.5 billion), Electrical Machinery ($21.2 billion), Optic and Medical Instruments ($6.4 billion), and Organic Chemicals ($3.0 billion).

U.S. imports of agricultural products from Japan totaled $504 million in 2008. Leading categories include: snack foods (including chocolate) ($53 million), wine and beer ($42 million), and processed fruit and vegetables ($34 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $24.5 billion in 2007 (latest data available), up 3.0 % ($723 million) from 2006, and up 92% ($11.7 billion) from the 1994 level. Royalties and license fees, and other transportation categories accounted for most of U.S. services imports from Japan.

Trade Balance

The U.S. goods trade deficit with Japan was $74.1 billion in 2008, a 10.4% decrease ($8.6 billion) over 2006. The U.S. goods trade deficit with Japan accounted for 9.1% of the overall U.S. goods trade deficit in 2008, down from 43.4% in 1994.

The United States has a services trade surplus of $15.8 billion with Japan in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in Japan (stock) was $101.6 billion in 2007 (latest data available), a 10.0% increase from 2006.

U.S. direct investment in Japan is mostly in the finance, manufacturing, nonbank holding companies, and wholesale trade sectors.

Japan FDI in the United States (stock) was $233.1 billion in 2007 (latest data available), up 13.8% from 2006.

Japan direct investment in the U.S. is mostly in the wholesale trade and manufacturing sectors.

Sales of services in Japan by majority U.S.-owned affiliates were $54.3 billion in 2006 (latest data available), while sales of services in the United States by majority Japan-owned firms were $83.5 billion.

 

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*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.