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 rose by 18.9% to 11.5088 trillion yen. The trade deficit equated to roughly $3.4 billion, as reported by Xinhua News Agency.
Exports marked their 13th consecutive month of growth, bolstered by robust demand for semiconductors and chip manufacturing equipment. Xinhua also highlighted increased interest in products associated with artificial intelligence. September’s deficit represented a decrease from the 1.11 trillion yen shortfall recorded in August. Import growth slowed from August’s 28.0% increase, partly due to a decline in crude oil imports.
Rising energy costs have negatively impacted Japan’s trade balance throughout this year. Since Japan relies heavily on oil imports and depends on shipping routes through the Strait of Hormuz, disruptions in the Middle East have forced importers to pay higher prices to secure supplies via alternative routes. Brent crude oil prices have climbed from approximately $70 per barrel in February to about $110 a barrel.
Trade deficit for first half nearly doubles
Between April and September, Japan registered a trade deficit of 2.81 trillion yen, roughly $17.8 billion, nearly twice the amount from the same period last year. Exports grew 18.4% to 63.5 trillion yen, while imports increased by 20.4% to 66.3 trillion yen, both reaching record highs for Japan.
These figures reveal strong international demand for Japanese technology products alongside rising import costs. Semiconductors and related goods have supported exports throughout much of 2026. Japan also posted record trade values in July as imports outpaced exports. Elevated fuel prices continue to influence a broad range of sectors, including plastics and shipping expenses.
Weak yen and interest rate hikes influence future prospects
A depreciating yen has increased import costs, with the US dollar trading near 150 yen in recent weeks. To support the currency, the Bank of Japan has been gradually raising interest rates. Last month, it increased its benchmark rate from 1.0% to 1.25%, the highest in 31 years. The central bank’s policy board is scheduled to meet again next week.
The Bank aims for inflation around 2%. Experts believe that oil prices are unlikely to decline soon, which could sustain upward pressure on Japan’s import expenses in the months ahead. Additional monthly trade reports will reveal whether export growth can continue to counteract rising energy costs. The Ministry of Finance releases preliminary trade data each month.