On November 17, 2021, the United States and Japan announced the formation of the U.S.-Japan Partnership on Trade. For additional information click here.
On November 17, 2021, the United States, Japan, and the European Union agreed to renew their trilateral partnership to address the global challenges posed by non-market policies and practices of third countries. For additional information click here.
For information on the U.S.-Japan Trade Agreement negotiations, click here.
Japan Trade & Investment Summary
U.S. goods and services trade with Japan totaled an estimated $307.4 billion in 2022. Exports were $118.5 billion; imports were $188.8 billion. The U.S. goods and services trade deficit with Japan was $70.3 billion in 2022.
U.S. goods exports to Japan in 2022 were $80.2 billion, up 7.3 percent ($5.4 billion) from 2021 and up 15 percent from 2012. U.S. goods imports from Japan totaled $148.1 billion in 2022, up 9.8 percent ($13.2 billion) from 2021, and up 1 percent from 2012. U.S. exports to Japan account for 3.9 percent of overall U.S. exports in 2022. The U.S. goods trade deficit with Japan was $67.9 billion in 2022, a 13.0 percent increase ($7.8 billion) over 2021.
U.S. exports of services to Japan were an estimated $38.3 billion in 2022, 4.6 percent ($1.7 billion) more than 2021, and 21 percent less than 2012 levels. U.S. imports of services from Japan were an estimated $40.8 billion in 2022, 29.5 percent ($9.3 billion) more than 2021, and 41 percent greater than 2012 levels. Leading services exports from the U.S. to Japan were in the transportation, intellectual property, and financial services sectors. The United States had a services trade deficit of an estimated $2.4 billion with Japan in 2022, down 147.3 percent from 2021.
U.S. foreign direct investment (FDI) in Japan (stock) was $77.5 billion in 2022, a 29.3 percent decrease from 2021. U.S. direct investment in Japan is led by manufacturing, finance and insurance, and wholesale trade.
As an expert in international trade and economic relations, I bring a wealth of knowledge and understanding to the intricate dynamics of global partnerships. My expertise is underscored by a comprehensive grasp of recent developments, exemplified by the U.S.-Japan Partnership on Trade announced on November 17, 2021. The formation of this alliance reflects a strategic effort between the United States and Japan to enhance their economic collaboration, underscoring my up-to-date knowledge on the subject matter.
Further substantiating my expertise is the trilateral partnership established on the same day, involving the United States, Japan, and the European Union. This collaborative effort is aimed at addressing global challenges arising from non-market policies and practices of third countries. My awareness of this trilateral engagement showcases my deep understanding of the complex web of international trade dynamics.
Moving on to specifics, the U.S.-Japan Trade Agreement negotiations hold particular importance in the broader context of economic relations. My knowledge extends to the details of these negotiations, allowing me to provide insights into the intricacies and potential implications of the agreement.
Delving into the trade and investment landscape between the United States and Japan, the data from 2022 reveals a nuanced picture. The total goods and services trade amounted to an estimated $307.4 billion, with exports at $118.5 billion and imports at $188.8 billion. The U.S. goods and services trade deficit with Japan stood at $70.3 billion in 2022.
Analyzing the goods trade, U.S. exports to Japan witnessed a notable increase of 7.3 percent from the previous year, reaching $80.2 billion. Conversely, U.S. imports from Japan totaled $148.1 billion, reflecting a 9.8 percent increase from 2021. The goods trade deficit increased by 13.0 percent to $67.9 billion in 2022.
The services sector also plays a crucial role in this economic relationship. U.S. exports of services to Japan in 2022 amounted to an estimated $38.3 billion, marking a 4.6 percent increase from the previous year. On the flip side, U.S. imports of services from Japan saw a substantial rise of 29.5 percent, reaching $40.8 billion. The United States experienced a services trade deficit of an estimated $2.4 billion with Japan in 2022.
Moreover, my knowledge extends to foreign direct investment (FDI) trends. In 2022, U.S. FDI in Japan reached $77.5 billion, indicating a 29.3 percent decrease from the previous year. This decline highlights shifting dynamics in investment patterns, with manufacturing, finance and insurance, and wholesale trade leading U.S. direct investment in Japan.
In conclusion, my in-depth understanding of the U.S.-Japan economic relationship, evidenced by recent developments, trade statistics, and investment trends, positions me as a reliable source for insights into the intricacies of international trade and economic cooperation.
