TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved record-high values for both imports and exports within a single month, driven by increased energy expenses and robust demand for technology products. Imports escalated by 27.8% year-over-year to approximately 12.15 trillion yen. Exports also grew, rising 23.2% to about 11.51 trillion yen. The Ministry of Finance announced a trade deficit of 634.5 billion yen, as import growth outpaced overseas shipment expansion during the period.
For the second consecutive month, imports hit a record high, largely influenced by crude oil. Japan imported 5.5% more crude oil by volume compared to July 2025, with the total shipment value soaring 87.8% over the same timeframe. These figures highlight the elevated energy prices amid Japan’s continued dependence on imported oil and other fuels for domestic use.
Exports also marked a monthly record and extended their year-on-year growth streak to 11 months. The 23.2% increase in July followed a 19.3% rise in June. Export growth was notably sustained by semiconductor-related goods, with demand stemming from artificial intelligence infrastructure and data centre developments supporting shipments of technology components. Additionally, the weakening yen increased the yen-denominated value of overseas sales, amplifying the total export surge.
Technology exports bolster overall trade figures
During July, key destinations for Japanese exports remained the United States and China. Exports to the United States grew by 22.0% from the previous year to approximately 2.09 trillion yen. Meanwhile, shipments to China increased 25.8%, reaching around 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components, and semiconductor-related equipment to major international markets, making external demand a vital driver of the country’s monthly trade performance.
The July data followed a strong first half of 2026, with exports from January to June rising 13.7% compared to the same period in 2025. During that six-month span, imports grew more slowly. Japan Customs data indicated that electronic components and semiconductor-related products significantly contributed to export growth. However, July’s figures showed the trade balance shifting as rising import values surpassed the record export levels, resulting in a trade deficit.
Rising crude oil prices boost import expenditures
The notable increase in crude oil prices directly impacted Japan’s import costs. The value of oil imports surged at a much faster rate than physical volumes, pushing total imports to a new monthly peak. Currency fluctuations also played a role by increasing the yen cost of many goods priced in foreign currencies. Energy remains a significant component of Japan’s import basket, which explains why higher oil prices had such a pronounced effect on overall import value.
As Japan entered the third quarter, trade flows on both sides of its merchandise account reached record levels. External demand for technology-related products continued to support exports, while rising energy costs resulted in a larger import increase. The 634.5 billion yen deficit demonstrated that even record export figures could not fully offset the surging import bill. July thus represented a month of strong external sales combined with sharply higher purchasing costs, providing a clear snapshot of Japan’s expanding trade values in 2026.