FX.co ★ Japan Swings to Sharp Trade Deficit in January as Surplus Reverses

Japan’s trade position deteriorated sharply at the start of 2026, with the country’s trade balance plunging from a surplus to a deep deficit in January. According to data updated on 17 February 2026, Japan’s trade balance fell from a surplus of 113.5 billion in December 2025 to a deficit of 1,152.7 billion in January 2026.

The reversal marks a significant shift in Japan’s external accounts over a single month, suggesting a combination of weaker exports, stronger imports, or both. While detailed drivers were not provided with the headline figures, the magnitude of the move signals a notable change in trade dynamics at the beginning of the year, which will be closely watched by markets and policymakers for its potential implications for growth and currency trends.