TOKYO, JAPAN / RankWire.AI / – Japan achieved unprecedented levels in both its import and export values for July 2026, fueled by rising energy prices and robust demand for technology products, thereby boosting overall trade figures. Imports increased by 27.8% from the same month last year, reaching approximately 12.15 trillion yen. Exports also grew significantly, climbing 23.2% to about 11.51 trillion yen. According to the Ministry of Finance, the country recorded a trade deficit of 634.5 billion yen, as the growth in imports outpaced overseas shipments during this period.
This marked the second consecutive month where imports hit a record high, with crude oil being a major contributor to the increase. Japan imported 5.5% more crude by volume compared to July 2025, while the value of these imports surged by 87.8% over the same span. These figures reflect substantially higher energy costs amid Japan’s ongoing dependence on foreign supplies of oil and other fuels for domestic use.
Meanwhile, exports also reached a monthly peak, extending their year-on-year growth streak to 11 months. The 23.2% rise in July followed a 19.3% increase in June. Semiconductors and related technology products remained a key driver behind export gains. Increased demand for artificial intelligence infrastructure and data centers supported shipments of electronics and components. Additionally, the weaker yen contributed to higher yen-denominated sales abroad, amplifying the overall rise in Japan’s export figures.
Technological exports bolster trade expansion
Throughout July, the United States and China remained among Japan’s primary markets. Exports to the US increased 22.0% year-on-year to approximately 2.09 trillion yen. Similarly, shipments to China rose by 25.8%, reaching about 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components, and semiconductor equipment to major overseas markets, making external demand a crucial aspect of the country’s monthly merchandise trade performance.
These July figures followed strong trade growth during the first half of 2026, with exports from January to June climbing 13.7% compared to the same period last year. During that half-year, imports grew at a more moderate pace. Japan Customs data indicate that electronic components and semiconductor-related products were among the main contributors to export expansion. However, July’s data marked a shift in the monthly balance as rising import values surpassed the record export levels, resulting in a trade deficit.
Rising crude oil prices drive import values higher
The steep increase in crude oil prices had a clear impact on Japan’s import costs. Import values for oil grew much faster than physical volumes, leading total imports to a new monthly high. Currency fluctuations further elevated the yen cost of many foreign-priced goods. Energy remained one of the most significant components of Japan’s import basket, which explains why higher oil prices exerted such a strong influence on total overseas purchases.
As Japan entered the third quarter, trade flows on both sides of its merchandise account reached record levels. External demand for technology-related goods continued to support exports, while energy costs contributed to a larger import rise. The 634.5 billion yen deficit indicates that despite record export figures, they could not fully offset the soaring import bill. Consequently, July exemplified a month of strong external sales coupled with sharply increased purchasing costs, offering a clear snapshot of Japan’s expanding trade values in 2026.