A working luncheon in Sacramento enabled longtime trade allies from the California Chamber of Commerce and leading associations of Japanese businesses to exchange thoughts on current issues.
The July 9 gathering was the 24th annual visit between representatives from the CalChamber, the Japanese Chamber of Commerce of Northern California (JCCNC) and Japan Business Association of Southern California (JBA).
Leading the Japanese business delegation were:
- Kazuhiro Gomi, JCCNC president and president and CEO of NTT Research, Inc., the global research and development arm of NTT; and
- Shinichi Fujinami, JBA president and head of the Los Angeles branch of MUFG Bank, Ltd. Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups.
CalChamber representatives at the luncheon were Jennifer Barrera, president and CEO, and Susanne T. Stirling, senior vice president, international affairs.
Current Topics
Luncheon discussion themes included the tariffs imposed by the Trump administration. The CalChamber reiterated its support for a free trade agenda and longtime commitment to supporting a national free trade agenda that fosters economic growth and job creation.
Other luncheon topics included the overall economy, energy issues, homelessness, the supply chain, and the affordability, environmental and regulatory burdens placed on businesses in California. In addition, there are 110 sister city relationships between California and Japan, contributing to good will and relationship building.
Top Trading Partner
U.S.-Japan Trade
Japan was the sixth largest U.S. export partner in 2024, with total exports equaling $79.74 billion, according to the International Trade Administration. The top five exports to Japan from the United States are chemicals ($15.75 billion), oil and gas ($10.07 billion), computer and electronic products ($8.7 billion), transportation equipment ($8.61 billion), and processed foods ($5.85 billion).
Japan ranked fifth as a source of U.S imports; total imports were $148.21 billion. Top imports from Japan were transportation equipment ($56.75 billion), non-electrical machinery ($28.01 billion), chemicals ($18.43 billion), computer and electronic products ($12.76 billion), and electrical equipment, appliances and components ($9.74 billion).
U.S exports of goods and services to Japan were $126.6 billion, up 5.2% from 2023; imports were $190.9 billion, up 2.4% from 2023, reducing the U.S trade deficit with Japan to $64.3 billion.
California Trade Facts
California accounts for roughly 14% of U.S. exports to Japan. In 2024, Japan ranked fourth among California export partners, with exports to Japan totaling $10.88 billion. Japan has been California’s fourth ranked export partner since 2010.
The top five California exports to Japan last year were computer and electronic products ($2.06 billion), transportation equipment ($1.72 billion), non-electrical machinery ($1.4 billion), processed foods ($1.23 billion), and chemicals ($1.15 billion).
Japan also ranked sixth among California import partners, with imports totaling $27.7 billion, making California imports 18.7% of total U.S imports from Japan.
The top five imports from Japan were transportation equipment ($11.52 billion), non-electrical machinery ($3.33 billion), computer and electronic products ($3.27 billion), chemicals ($3.17 billion), and electrical equipment, appliances and components ($1.68 billion).
In 2024, Japan continued to be one of the top investors in California. Japanese foreign-owned enterprises (FOEs) in California provided 127,138 jobs through 3,391 firms, which led to an estimated $14.61 billion in wages. The top sectors for these jobs are manufacturing, wholesale trade, professional/business services, retail trade, and financial activities. (World Trade Center Los Angeles)
Tariffs
On July 7, President Donald Trump began tariff notifications with missives announcing his intent to impose 25% levies on goods from Japan, matching the initial reciprocal tariffs imposed briefly in April. Japan also faces U.S. tariffs on steel.
Top imports from Japan to the United States in 2024 were cars, car parts, pharmaceuticals and machine parts valued at $148.4 billion.
The bilateral U.S. trade deficit with Japan last year was $68.5 billion, the seventh largest the United States had with any country.
World Expo 2025
The World Expo began in Osaka, Japan on April 13 and continues to October 13. Osaka previously hosted the World Expo in 1970.
World Expo 2025 is projected to attract about 28 million visitors. The theme for the expo is “Designing Future Society for our Lives.” Subthemes are “Saving Lives,” “Empowering Lives” and “Connecting Lives,” with “Saving Lives” including infant vaccinations, sanitation, lifestyle (diet and exercise) and extending lifespans.
Longtime Allies
• JCCNC was established in 1951 as a nonprofit corporation to promote business, mutual understanding and goodwill between Japan and the United States. It has been a CalChamber member since 1997.
• JBA, founded in 1961, is a nonprofit organization consisting of nearly 420 Japanese corporations doing business across Southern California. It has been a CalChamber member since 1989.
For more information on California -Japan relations, visit www.calchamber.com/japan.
