TOKYO, Japan / ConSynSer / – Preliminary figures from the Ministry of Finance indicate that Japan experienced a trade shortfall of 536.6 billion yen in September, driven by faster growth in imports compared to exports. During this period, exports increased by 16.7% year-on-year to 10.9723 trillion yen, while imports surged by 18.9% to 11.5088 trillion yen. The resulting deficit was roughly equivalent to $3.4 billion, according to Xinhua News Agency.
Exports marked their 13th consecutive month of growth, supported by robust demand for semiconductors and chip manufacturing equipment. Xinhua also highlighted increased interest in products related to artificial intelligence. This data represents Japan’s fifth consecutive month of trade deficits, although the September shortfall decreased from 1.11 trillion yen in August. Import growth slowed from a 28.0% increase in August, partly due to a reduction in crude oil arrivals.
Rising energy costs have significantly impacted Japan’s trade balance throughout this year. As a resource-scarce nation, Japan relies heavily on oil imports via shipping routes through the Strait of Hormuz. Disruptions in the Middle East have compelled importers to pay more to secure supplies through alternative routes. Brent crude oil prices have increased from approximately $70 per barrel in February to around $110 per barrel.
First-half trade deficit nearly doubles
Between April and September, Japan posted a trade deficit of 2.81 trillion yen, approximately $17.8 billion, nearly twice the amount from the same period last year. During this timeframe, exports grew 18.4% to 63.5 trillion yen, while imports increased 20.4% to 66.3 trillion yen, both reaching historic highs for Japan.
These figures reflect strong international demand for Japanese technology products, alongside rising import expenses. Semiconductor-related exports have supported Japan’s trade figures through much of 2026. Japan also recorded record trade values in July, as imports outpaced exports. Elevated fuel prices continue to influence various sectors, including plastics manufacturing and shipping costs.
Weak yen and interest rate hikes influence future prospects
The depreciation of the yen has increased import costs, with the US dollar trading near 150 yen in recent weeks. 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 inflation around 2%. Analysts suggest that oil prices are unlikely to decline soon, which could sustain upward pressure on Japan’s import costs in the coming months. Ongoing monthly trade data will reveal whether export growth can continue to compensate for rising energy expenses. The Ministry of Finance releases preliminary trade figures each month.