Japan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in japan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Overview
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Japan is one of the United States’ most important trade and investment partners. In 2024, bilateral U.S.-Japan trade in goods and services was worth $317 billion. Both exports and imports increased over 2023. U.S. goods exports to Japan were about $81 billion, while services exports were approximately $46 billion, for a total of $126.6 billion, up 5 percent from 2023. Top U.S. exports to Japan include liquified natural gas, pharmaceutical preparations, meat and poultry, industrial machines, medicines & medical equipment, civilian aircraft, engines and parts, and corn. Imports of goods from Japan were over $149 billion, and services imports were about $41 billion, for a total of $190.9 billion, up 2 percent from the prior year.  Top U.S. imports from Japan are autos, auto parts, and electronics. Japan is the fifth-largest export market and trading partner for the United States, which has a trade deficit with Japan of about $65.7 billion in goods (principally autos and related parts) and a trade surplus of about $4.4 billion in services.  

As of 2023, Japan is the largest source of foreign direct investment (FDI) into the United States, with an FDI stock of $783 billion. Japan’s FDI position in the U.S. on a historical cost basis has grown every year for over a decade, from $301 billion in 2012. Nearly half (41%) of Japanese companies’ direct investment in the United States is in manufacturing, particularly the manufacturing of chemicals (29%) and transportation equipment (24%) (e.g., autos). Another 24% percent is in miscellaneous manufacturing and 10% is in electronics products. These investments support close to one million U.S. jobs and contribute to U.S. economic output and exports. Please see the SelectUSA FDI Fact  Sheet on Japan and the SelectUSA Investor Guide. 

There are several reasons for U.S. firms to participate in the Japanese market. In addition to its size and wealth, Japanese business partners expose U.S. companies to new technology, rigorous competition, and – in some cases – the opportunity to partner with Japanese firms in third markets. 

Why do Business in Japan?

  • Japan is the fourth largest economy in the world after the United States, China, and Germany. It is the sixth largest importer of U.S. products after Canada, Mexico, China, the Netherlands, and the United Kingdom. Japan is a key member of the international trading system with a market that respects the rule of law and provides strong protections for intellectual and real property rights. 
     
  • Japan’s consumer economy is large, broad-based, and sophisticated. The average household net-adjusted disposable income per capita is $28,872 per year, which underpins its strength as a consumer market. 
     
  • Japan is highly dependent upon the import of natural resources. Japan was, for example, for decades the world’s largest importer of liquefied natural gas (LNG), although it was recently surpassed by China. Japan relies on imports for approximately 60% of its caloric intake, and the United States is Japan’s leading supplier of agricultural imports. 
     
  • Japan’s rapidly aging and declining population continues to send ripple effects through its society and economy, shaping present and future demand in economic spheres as disparate as robotics and pharmaceuticals, franchising, and real estate. 
     
  • Japan’s strategic alliance and deep economic integration with the United States presents opportunities in advanced sectors such as space, defense, and security. Japan is a leading importer of U.S. aerospace and defense equipment and, increasingly, an integrated co-developer. Related growth sectors include defense procurement, advanced manufacturing, and cyber security solutions. 

Demographics

Japan’s population is declining as it ages rapidly. The population may decrease by as much as one third by 2060, from 123 million to 87 million. According to the OECD, Japan has the world’s third “oldest” population and oldest population of G20 countries, with over 28% of its population over the age of 65. The proportion of the population older than 65 will rise to 40 percent by 2060. The Japanese government and business community seek to offset the effects of this demographic decline on economic growth and government budget resources, but Japan’s aging and declining population will shape demand and opportunities throughout the economy. 

2025 U.S-Japan Trade Deal

On July 23, 2025, President Donald J. Trump announced a trade deal with Japan, featuring a 15% tariff on goods coming from Japan and a $550 billion Japanese investment mechanism that will target the revitalization of the U.S. strategic industrial base. The agreement opens Japan to more than $8 billion of U.S. agricultural products such as corn, soybeans, bioethanol and sustainable aviation fuel. 

Trade statistics and economic indicators

Several organizations, both government and non-government related, keep up-to-date data on Japan’s economy and trade.  A few of these are listed below: 

Political Environment

Visit the State Department’s website for background on Japan’s political and economic environment.