TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan’s trade values hit new all-time highs for both imports and exports, driven by rising energy prices and increased semiconductor demand boosting trade volume. Imports climbed 27.8% from the same month last year to approximately 12.15 trillion yen. Exports grew by 23.2% to around 11.51 trillion yen. According to figures from the Ministry of Finance, imports grew at a faster rate than exports, resulting in Japan recording a trade deficit of 634.5 billion yen for July.
This month marked the second consecutive time that Japan achieved a record high in import value. The rise in crude oil imports played a key role as Japan faced increased energy costs. Compared to July 2025, crude oil imports increased by 5.5%, ending a three-month period of year-on-year declines. The value of these crude shipments surged by 87.8% over that period. Japan’s heavy reliance on imported energy means that fluctuations in oil prices and exchange rates significantly influence its merchandise trade figures.
Exports also reached a record monthly high, extending their growth streak to 11 months. The 23.2% increase followed a 19.3% rise in June. Demand for semiconductor-related goods remained robust, supported by investments related to artificial intelligence and data centres. A weakening yen contributed to increasing the yen value of exports and made Japanese products more affordable for certain international buyers. The export growth outpaced that of the previous month.
Semiconductor Demand Spurs Japanese Export Growth
Trade with Japan’s two largest individual markets expanded significantly in July. Exports to the United States grew by 22.0% compared to the previous year, reaching about 2.09 trillion yen. Shipments to China increased by 25.8%, amounting to roughly 2.01 trillion yen. The increase was driven by global demand for semiconductors, electronics, and AI-related infrastructure, supporting Japanese industrial exports. Japan’s large manufacturing sector, which includes electronic components, machinery, and vehicles, remains a major contributor to its overseas sales.
According to the Ministry of Finance, there was a notable shift from the first half of 2026, when overall export growth had already outpaced import growth. Customs data for January through June showed exports increased by 13.7% year-on-year, while import growth was more modest. Electronic components and semiconductors contributed strongly to this increase. However, July reversed this trend as faster-growing import values pushed Japan back into a merchandise trade deficit for the month.
Rising Energy Costs Push Import Expenses to New Highs
Japan’s July trade figures also reflected the impact of higher crude oil prices on an economy that relies heavily on energy imports. The significant rise in the value of oil imports was primarily due to increased costs rather than volumes. This disparity contributed to a second consecutive record in total import expenses. The weak yen further increased the cost of foreign-priced goods, while imported energy remained a core component of Japan’s overseas purchases.
These record trade figures occurred alongside sustained overseas demand for Japan’s technology exports. During the April-to-June quarter, exports supported the economy, which grew at an annualized rate of 1.1%. The July data indicate that international demand remained strong at the start of the third quarter. Nonetheless, the 634.5 billion yen trade deficit underscores the impact of rising import costs, as record exports could not offset the record-high import values.