TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved historic monthly figures for both imports and exports, driven by rising energy prices and robust technology demand, which boosted overall trade. Imports surged 27.8% compared to the previous year, reaching approximately 12.15 trillion yen, while exports increased by 23.2% to about 11.51 trillion yen. The Ministry of Finance announced a trade deficit of 634.5 billion yen, as import growth outpaced overseas shipments during the period.
This marked the second consecutive month that imports hit a record high, with crude oil playing a significant role in the increase. Japan’s crude oil imports were 5.5% higher in volume compared to July 2025, and the value of these shipments soared by 87.8%. These figures reflected considerably higher energy costs amid Japan’s continued reliance on foreign supplies of oil and other fuels for domestic use.
Exports also reached a monthly peak and maintained their growth streak for 11 months straight. The July increase of 23.2% followed a 19.3% rise in June. Semiconductor-related goods remained a key driver of export growth, supported by demand linked to artificial intelligence infrastructure and data centres, boosting shipments of technology products and components. Additionally, the weakening yen enhanced the yen value of overseas sales, significantly contributing to the sharp rise in Japan’s export total.
Tech exports bolster trade gains
During July, the United States and China remained critical markets for Japanese exports. Shipments to the U.S. increased 22.0% from the previous year to approximately 2.09 trillion yen, while those to China rose 25.8% to around 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components, and semiconductor-related equipment to major international markets, making external demand a vital component of the nation’s monthly merchandise trade results.
Following strong growth in the first half of 2026, July’s data continued the upward trend. Between January and June, exports grew 13.7% compared to the same period in 2025, whereas imports increased at a slower pace. Japan Customs data revealed that electronic components and semiconductor-related products were among the top contributors to export expansion. However, July shifted the trade balance as rising import values surpassed record export figures, resulting in a deficit.
Crude oil prices boost import figures
The significant increase in crude oil costs clearly impacted Japan’s import expenses. The value of oil imports rose far more rapidly than physical volumes, pushing total imports to a new monthly high. Currency fluctuations also elevated the yen cost of many foreign-priced goods. Energy remained a major component of Japan’s import basket, which explains why higher oil prices had such a pronounced effect on the overall import value.
As it entered the third quarter, Japan experienced record trade flows on both sides of its merchandise account. While overseas demand for technology-related products continued to support exports, energy prices drove a larger increase in imports. The 634.5 billion yen deficit indicated that the record-breaking exports did not fully offset the soaring import bill. Consequently, July combined strong external sales with sharply rising purchasing costs, providing one of the clearest monthly glimpses of Japan’s expanding trade figures in 2026.