TOKYO (AP) - Japan has reported a notable increase in its exports, which grew at an annual pace of 11.4% in February. This rise in exports comes alongside a slight decline in imports, resulting in a trade surplus after experiencing two consecutive months of deficits. The data comes amid growing concerns regarding tariff hikes proposed by former President Donald Trump.

According to the Finance Ministry, Japan recorded a trade surplus of 584 billion yen (approximately $3.9 billion) last month, a significant turnaround from the trade deficit of 415 billion yen reported the previous year. The robust increase in exports outperformed the 7% annual rise seen in January. In terms of raw figures, exports totaled 9.19 trillion yen ($61 billion), while imports decreased by 0.7% to 8.61 trillion yen ($57 billion).

In January, Japan had seen a sharp 17% year-on-year increase in imports. However, the recent surge in exports reflects an aggressive strategy by Japanese businesses aiming to ship goods overseas ahead of impending tariffs set to be imposed by the Trump administration.

The U.S. tariffs on steel and aluminum are already in effect, but the most significant concern for Japan's economy is the potential auto tariffs scheduled to commence next month. In light of this, Japanese officials are actively seeking an exemption from the Trump administration, emphasizing Japan's status as a crucial trading partner and ally of the United States.

In February, exports to the U.S. increased by 10.5%, while imports from the U.S. saw a decline of 2.7%, resulting in a sizable surplus of 918.8 billion yen ($6.2 billion). Additionally, exports to Asian markets surged by approximately 16% compared to the previous year, although shipments to Europe decreased by 4.5%.

The categories driving this significant upswing in exports include food, machinery, and vehicles. Additionally, reduced oil prices contributed to a decline in imports from the Middle East, further shaping Japan's trade dynamics.

On the same day, Japan's central bank announced its decision to maintain its benchmark interest rate at 0.5%. This decision was anticipated as the central bank has been gradually raising interest rates from below zero in an attempt to counteract rising inflation. However, the tariffs and broader trade policies enacted by the Trump administration have injected a degree of uncertainty into the global economic outlook.

As a result of these developments, Japan's trade landscape is evolving rapidly, with the future heavily influenced by international trade policies and geopolitical factors.