TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved record-breaking figures in both its import and export sectors, fueled by rising energy prices and robust demand for technology products. Imports increased by 27.8% compared to the previous year, reaching approximately 12.15 trillion yen. Exports grew 23.2% to about 11.51 trillion yen. The Ministry of Finance announced a trade deficit of 634.5 billion yen, as import expansion outpaced overseas shipments during the month.
For the second month in a row, imports hit a new peak, with crude oil playing a significant role in the surge. Japan’s crude imports rose by 5.5% in volume compared to July 2025, while the total value of those imports soared by 87.8%. These figures highlight the impact of elevated energy costs amid Japan’s continued heavy reliance on foreign supplies of oil and other fuels for domestic needs.
Exports also reached an all-time high, extending their growth streak to 11 months. The 23.2% rise in July followed a 19.3% increase in June. Technology exports, especially semiconductor-related products, remained a key driver of this expansion. Increased demand for artificial intelligence infrastructure and data centres supported shipments of tech components. Additionally, the depreciation of the yen enhanced the yen value of overseas sales, further contributing to the sharp increase in Japan’s export totals.
Tech exports bolster overall export figures
During July, the United States and China remained prominent destinations for Japanese goods. Exports to the US climbed 22.0% year-on-year to roughly 2.09 trillion yen, while shipments to China increased 25.8% to approximately 2.01 trillion yen. Japan’s manufacturing industry supplies vehicles, machinery, electronic parts, and semiconductor equipment to major markets overseas, making external demand a vital aspect of the nation’s monthly trade performance.
These July results followed a strong first half of 2026, with exports from January to June rising by 13.7% compared to the same period a year earlier. During this period, imports grew at a slower rate. Japan Customs data indicated that electronic components and semiconductor-related products were significant contributors to export growth. However, July saw a shift as rising import values surpassed export records, leading to a trade deficit.
Rising crude oil prices boost import values
The notable increase in crude oil prices significantly impacted Japan’s import costs. Import values for oil rose much faster than physical volumes, pushing total imports to a new monthly peak. Movements in currency exchange rates also contributed, raising the yen cost of many goods priced internationally. Energy remained a major component of Japan’s import basket, which explains why soaring oil prices had such a pronounced effect on overall import expenditure.
Entering the third quarter, Japan experienced record trade flows on both sides of its merchandise account. While energy costs drove a larger rise in imports, demand for technology-related exports continued to support export growth. The 634.5 billion yen deficit demonstrated that even record exports could not fully offset the surge in import costs. July exemplifies this dynamic: strong external sales combined with sharply higher import expenses, offering a clear snapshot of Japan’s expanding trade volume in 2026.