TOKYO, Japan / ConSynSer / – Japan’s trade balance swung into a deficit of 536.6 billion yen in September, as the pace of import growth outstripped that of exports, according to initial figures from the Ministry of Finance. During this period, exports increased by 16.7% year-on-year to reach 10.9723 trillion yen, while imports expanded by 18.9% to 11.5088 trillion yen. The resulting shortfall amounted to roughly $3.4 billion, as reported by Xinhua News Agency.
This marks the 13th month in a row that Japan has experienced rising exports, driven by robust demand for semiconductors and chip manufacturing equipment. Xinhua also highlighted increased interest in products related to artificial intelligence. The September deficit represents Japan’s fifth consecutive month of trade shortfalls, although the gap shrank compared to August’s 1.11 trillion yen deficit. Import growth slowed from a 28.0% increase in August, partly due to a decrease in crude oil imports.
Rising energy prices have significantly impacted Japan’s trade deficit this year. As a resource-scarce nation, Japan imports nearly all of its oil, relying heavily on shipping routes through the Strait of Hormuz. Disruptions in the Middle East have compelled importers to pay higher prices to secure supplies via alternative routes. Brent crude has surged from about $70 per barrel in February to approximately $110 a barrel.
First-half trade deficit nearly doubles compared to last year
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, equivalent to around $17.8 billion, nearly twice the amount recorded during the same period last year. During this timeframe, exports grew by 18.4% to 63.5 trillion yen, while imports increased by 20.4% to 66.3 trillion yen. Both figures set new records for Japan.
These numbers reflect strong international demand for Japanese technological products, alongside escalating import costs. Semiconductor-related exports have remained a key driver throughout much of 2026. Japan also posted record trade values in July when imports outpaced exports. Rising fuel prices have also impacted various sectors, including plastic goods and shipping expenses.
Yen depreciation and interest rate hikes influence future trends
A declining yen has increased import costs, with the US dollar recently trading around 150 yen. The Bank of Japan has been gradually raising interest rates, partly to bolster the yen. Last month, it increased its benchmark rate to 1.25% from 1.0%, reaching the highest level in 31 years. The central bank’s policy board is scheduled to meet again next week.
The Bank aims for an inflation rate of approximately 2%. Analysts suggest that crude oil prices are unlikely to decline anytime soon, which could sustain upward pressure on Japan’s import expenses in the upcoming months. Additional monthly trade data will be essential to determine if export growth can continue to offset rising energy costs. The Ministry of Finance releases preliminary trade figures every month.