TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan reached historic highs in both import and export values for a single month, driven by increased energy prices and robust demand for technology products. Imports soared by 27.8% year-over-year to approximately 12.15 trillion yen, while exports expanded by 23.2% to about 11.51 trillion yen. The Ministry of Finance reported a trade deficit of 634.5 billion yen, as import growth outpaced exports during the month.
For the second consecutive month, imports hit a record high, with crude oil being a significant contributor to the increase. Japan imported 5.5% more crude by volume than in July 2025, while the value of these shipments surged by 87.8% over the same period. These figures highlight the impact of rising energy costs at a time when Japan continues to depend heavily on imports of oil and other fuels for domestic needs.
Exports also set a new monthly record, extending their growth streak to 11 months on a year-on-year basis. The 23.2% increase in July followed a 19.3% rise in June. Semiconductor-related products remained a key driver of export expansion. Increased demand for artificial intelligence infrastructure and data centres supported shipments of technology goods and components. The weakening yen further amplified the yen value of overseas sales, contributing to the sharp rise in Japan’s total export value.
Technology Exports Bolster Overall Export Growth
During July, the United States and China remained crucial markets for Japanese exports. Shipments to the United States increased by 22.0% from the previous year, reaching roughly 2.09 trillion yen. Exports to China grew by 25.8%, totaling around 2.01 trillion yen. Japan’s manufacturing sector exports include vehicles, machinery, electronic components, and semiconductor-related equipment, making external demand vital to the country’s monthly trade performance.
The July figures follow strong trade performance during the first half of 2026, with exports from January through June rising by 13.7% compared to the same period the previous year. Meanwhile, growth in imports was more moderate over the same six months. According to Japan Customs data, electronic components and semiconductor-related products were among the main contributors to export growth. The monthly balance shifted in July as rising import values surpassed the record levels of exports, resulting in a trade deficit.
Rising Oil Prices Significantly Increase Import Values
The steep increase in crude oil prices notably affected Japan’s import costs. While physical volumes of oil imports grew modestly, their value increased much more rapidly, pushing total imports to a new monthly peak. Currency fluctuations also played a role, raising the yen cost of many foreign-currency-denominated goods. Energy remains one of Japan’s largest import categories, explaining why higher oil prices had such a profound impact on the overall import bill.
As Japan entered the third quarter, it experienced record trade flows on both the import and export sides of its merchandise account. External demand for technology products continued to support exports, while rising energy costs led to a larger increase in imports. The 634.5 billion yen deficit indicates that, despite record exports, the country’s import bill was even higher. July thus showcased a month where strong external sales coincided with sharply rising purchasing costs, offering a clear snapshot of Japan’s expanding trade figures in 2026.