TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan reached all-time high trade values for both imports and exports, fueled by increased energy prices and demand for semiconductors. Imports surged 27.8% from the previous year to approximately 12.15 trillion yen, while exports grew 23.2% to around 11.51 trillion yen. According to the Ministry of Finance, imports grew 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 record for Japan’s import value. The increase was significantly influenced by crude oil costs, as Japan faced rising energy expenses. Crude oil import volumes rose by 5.5% compared to July 2025, ending three months of year-on-year declines. The value of crude shipments jumped 87.8% in the same period. Due to Japan’s continued reliance on imported energy, fluctuations in oil prices and exchange rates play a crucial role in shaping its trade figures.
Exports also hit a new monthly high and maintained their upward trend for 11 consecutive months. The 23.2% rise followed a 19.3% increase in June. Demand for semiconductor-related products remained robust, supported by investments linked to artificial intelligence and data centers. Additionally, a weaker yen increased the yen-denominated value of exports and made Japanese goods more affordable for some international buyers. The export growth in July surpassed that of the previous month.
Semiconductor Demand Boosts Japan’s Export Performance
Trade with Japan’s top two export destinations grew markedly in July. Shipments to the United States increased by 22.0% from the previous year, reaching approximately 2.09 trillion yen. Exports to China rose 25.8% to about 2.01 trillion yen. These upward trends were driven by a global uptick in semiconductor, electronic, and AI-related infrastructure spending, boosting demand for Japanese industrial products. Japan’s manufacturing sectors specializing in electronic components, machinery, and vehicles constitute a significant portion of its overseas sales.
The Ministry of Finance data indicated a shift from the first half of 2026, when overall export growth had already outpaced import growth. Between January and June, customs data showed a 13.7% increase in exports compared to the same period last year, while import growth was more subdued. Electronic components and semiconductors were among the strongest contributors. However, July reversed this trend, as the faster rise in import values pushed Japan back into a merchandise trade deficit for the month.
Rising Energy Costs Drive Record Import Expenses
Japan’s July trade statistics also reflected the impact of increased crude oil prices on an economy heavily dependent on energy imports. The sharp rise in the value of oil imports was primarily due to higher prices rather than increased volumes. This disparity contributed to pushing the total import bill to a second consecutive record. The weak yen further exacerbated costs for goods priced in foreign currencies, with imported energy remaining a critical component of Japan’s overseas purchases.
The record trade values coincided with continued strong global demand for Japanese technology exports. These exports supported the economy during the April-June quarter, when GDP expanded at an annualized rate of 1.1%. July’s figures confirmed that international demand remained resilient at the start of the third quarter. Nonetheless, the 634.5 billion yen trade deficit underscored how rising import costs outpaced export growth, preventing Japan from closing the gap despite record export figures.