TOKYO, JAPAN / RankWire.AI / – Amid a backdrop of rising energy prices and robust demand for semiconductors, Japan achieved new record levels in both imports and exports during July 2026. The value of imports increased by 27.8% compared to the previous year, reaching approximately 12.15 trillion yen. Meanwhile, exports grew 23.2% to about 11.51 trillion yen. Data from the Ministry of Finance indicated that imports expanded at a faster rate than exports, resulting in a trade deficit of 634.5 billion yen for the month.
This month marked the second consecutive period where imports by value hit an all-time high. The surge in crude oil imports was a key factor, as Japan faced escalating energy costs. The volume of crude oil imports increased by 5.5% over July 2025, breaking a three-month decline in year-on-year comparisons. The monetary value of these crude shipments soared by 87.8% over the same period. As Japan remains heavily reliant on imported energy, fluctuations in oil prices and exchange rates continue to significantly influence its merchandise trade figures.
In addition, exports reached a new monthly peak and maintained their upward growth streak for 11 consecutive months. The 23.2% rise was an acceleration from June’s 19.3% increase. Demand for semiconductor-related goods stayed strong, driven by investments linked to artificial intelligence and data centres. A weakened yen also contributed to higher yen-denominated overseas sales and made Japanese products more affordable for certain international buyers. The export growth in July surpassed the pace seen in the previous month.
Demand for Semiconductors Bolsters Japan’s Export Figures
Trade with Japan’s two main export destinations experienced significant growth during July. Exports to the United States rose 22.0% year-on-year to around 2.09 trillion yen. Shipments to China increased by 25.8%, reaching approximately 2.01 trillion yen. These gains were driven by increased global expenditure on semiconductors, electronics, and AI-related infrastructure, supporting demand for Japanese industrial products. Japan’s manufacturing sector in electronic components, machinery, and vehicles constitutes a sizable portion of its international sales.
According to the Ministry of Finance, a notable shift occurred compared to the first half of 2026, when overall export growth had already outpaced import growth. During January to June, customs-based exports grew by 13.7% compared to the previous year, while import growth was comparatively slower. Semiconductors and other electronic components were among the main contributors to this export strength. However, July reversed this trend, as faster increases in import values pushed Japan back into a merchandise trade deficit for the month.
Rising Energy Costs Contribute to Record Import Expenses
Japan’s trade data for July also underscored the impact of higher crude oil prices on an economy that imports the majority of its energy supplies. The sharp increase in the value of oil imports was primarily driven by price rises rather than increased physical volumes. This disparity played a significant role in lifting the total import bill to a second consecutive record. The weak yen further amplified costs for goods priced in foreign currencies, and imported energy continued to be a major component of Japan’s overseas purchases.
These record trade values coincided with ongoing strong global demand for Japan’s technology exports. The sector supported the economy during the April-to-June quarter, when GDP grew at an annualized rate of 1.1%. The July figures suggest that international demand remained robust at the start of the third quarter. Nonetheless, the 634.5 billion yen trade deficit highlighted the extent to which rising import costs outpaced export growth, as Japan’s record exports could not fully offset its record import values.