TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved historic monthly figures for both imports and exports, driven by elevated energy prices and robust demand for technology products, boosting overall trade activity. Imports increased by 27.8% from the same month last year, reaching approximately 12.15 trillion yen. Exports rose by 23.2% to about 11.51 trillion yen. According to the Ministry of Finance, this led to a trade deficit of 634.5 billion yen, as import growth outpaced outbound shipments during the period.
For the second consecutive month, imports hit an all-time high, with crude oil accounting significantly for the surge. Japan’s crude oil imports grew by 5.5% in volume compared to July 2025, while the total value of these shipments soared by 87.8%. The increase reflected much higher energy costs at a time when Japan continued to depend heavily on overseas sources for oil and other fuels to meet domestic needs.
Exports also reached a monthly record, extending their year-on-year growth streak to 11 months. The 23.2% rise in July followed a 19.3% increase in June. A key driver of export growth remained semiconductor-related products, with demand linked to artificial intelligence infrastructure and data centres supporting shipments of technology components and equipment. The weakening yen further boosted the yen value of Japan’s overseas sales, amplifying the sharp rise in total exports.
Technology shipments bolster export gains
During July, the United States and China remained vital destinations for Japanese goods. Exports to the US increased 22.0% year-on-year to approximately 2.09 trillion yen, while shipments to China grew by 25.8% to about 2.01 trillion yen. Japan’s manufacturing sector provides vehicles, machinery, electronic components, and semiconductor-related equipment to major international markets, making external demand a crucial element of the country’s monthly trade performance.
The July figures follow a period of strong trade growth in the first half of 2026, with exports from January to June rising 13.7% compared to the same period in the previous year. Conversely, imports increased at a more moderate pace during those six months. According to Japan Customs data, electronic components and semiconductor-related products played a significant role in export growth, but July’s figures marked a shift as rising import values outpaced exports, resulting in a trade deficit.
Rising crude oil prices drive import volume higher
The notable increase in crude oil prices directly impacted Japan’s import expenses. The value of oil imports grew much faster than physical volumes, leading to a new monthly record for total imports. Currency fluctuations also contributed, raising the yen cost of many goods priced in foreign currencies. Energy products remain among Japan’s largest import categories, explaining why higher oil prices significantly influenced overall import values.
Entering the third quarter, Japan experienced record trade flows on both the import and export sides of its merchandise account. External demand for technology-related exports continued to support growth, while higher energy costs resulted in a more substantial increase in imports. The 634.5 billion yen deficit indicates that even with record exports, the import bill’s rise was greater. Consequently, July showcased a combination of strong external sales and sharply elevated purchase costs, offering one of the clearest monthly snapshots of Japan’s expanding trade figures in 2026.