Japan's exports rose for a fourth consecutive month in January led by auto shipments to the U.S., data showed on Wednesday, though economists said President Donald Trump's threat of hefty tariffs on car imports could hurt future shipments.

The U.S. president's threat to impose a 25% levy on car imports would likely deliver a big blow to Japan’s economy.

Japans exports grew for the fourth straight month in January, signaling a resilient economic recovery despite looming U.S. tariff threats. Data released Wednesday showed a 7.2% year-on-year increase,

Japan's exports rose for a fourth consecutive month in January led by auto shipments to the United States, but if U.S. President Donald Trump goes through with a plan to impose hefty car tariffs, a sharp drop-off is likely.

Imports surged 16.7%, led by communication machinery and computers, and beat the median estimate. Japan’s trade balance swung back into the red, with a deficit of ¥2.76 trillion ($18.2 billion), the largest in two years.

Japan also had a trade deficit, which measures the value of exports minus imports, a year ago, but the amount rose 60 per cent last month from January 2024. Exports totaled 7.86 trillion yen ($52 billion) last month, up 7 per cent on-year, rising in a variety of products including machinery, medical goods and ships.