Japan’s trade surplus with the US reached $63 billion despite an overall trade deficit of 5.2 trillion yen for the fiscal year through March. This surplus is a point of contention as Japan negotiates with the US to avoid higher tariffs proposed by President Trump, including a potential 24% tariff on imports. While Trump temporarily paused some tariffs, Japan still faces existing tariffs on various exports. To potentially ease tensions, Japan might consider concessions like importing more American rice. Overall, Japan’s annual exports rose 5.9% due to strong shipments and increased tourism, while imports rose 4.7%, impacted by a weaker yen. In March, Japan had a trade surplus of 544 billion yen. Exports to the US increased by 3%, and there’s evidence of rerouting exports within Asia to circumvent US tariffs.