Japan’s Trade Deficit Doubles as Hormuz Crisis Hikes Energy Import Costs
Japan booked a trade deficit of $17.8 billion (2.82 trillion Japanese yen) for April to September, almost double the deficit from a year earlier, government data showed on Wednesday, as the Middle East crisis made energy imports into the resource-poor G7 economy much more expensive. Between April an
Source: OilPrice.com
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DW NOTE
Japan imports 94% of its energy. The Hormuz closure isn't a supply shock for Tokyo — it's a compulsory tithe to whoever controls the rerouted tanker lanes. The trade deficit doubling is arithmetic: when your entire industrial base runs on molecules that now cost $40/barrel more to ship, the current account doesn't care about your monetary policy.