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Japan’s U.S. Arms Buys Soar as Audit Flags ¥300 Billion Forex Hit and Delivery Delays

The audit says dollar‑denominated FMS deals focus on a few costly platforms, increasing exposure to U.S. pricing plus U.S. timelines.

Overview

  • The Board of Audit counted ¥3.552 trillion in Foreign Military Sales contracts from 2018–2023, with FY2023 jumping to about ¥1.3867 trillion, more than triple FY2018.
  • It estimates roughly ¥300 billion in additional yen payments across FY2023–FY2025 due to depreciation, reflecting weaker conversion rates on dollar‑priced contracts.
  • Spending is concentrated in F‑35A/B fighters, E‑2D early‑warning aircraft, V‑22 Osprey transports and Aegis‑related systems, with the top 10 items exceeding 60% of the six‑year total.
  • In FY2023, the Air Self‑Defense Force accounted for 56% of contracting, the Maritime Self‑Defense Force 39% and the Ground Self‑Defense Force 2%.
  • The audit cites operational impacts from U.S. delivery and quality issues, including delayed E‑2D support equipment, overdue F‑35 parts and airframes, a JMSDF C‑130R needing major repairs, and short‑life biological‑detection consumables.