There is a goods trade deficit with Japan because the U.S. imports more than it exports, which Trump views as a sign of unfairness in the trading arrangements. In 2024, federal trade data shows the U.S. goods trade deficit with Japan was $68.5 billion.

President Donald Trump late Thursday threatened a 35% tariff on goods imported from Canada, a dramatic escalation in an on-again, off-again trade war with America’s northern neighbor and one of its most important trading partners.