TOKYO, JAPAN / RankWire.AI / – The Ministry of Finance reported that Japan achieved record-high trade values in both imports and exports for July 2026, driven by increased energy prices and robust demand for technology products. Imports surged 27.8% from the same month last year, reaching approximately 12.15 trillion yen. Exports grew by 23.2% to roughly 11.51 trillion yen. As a result, Japan experienced a trade deficit of 634.5 billion yen, since import growth outpaced overseas shipments during this period.
For the second month in a row, imports hit a record high, with crude oil accounting for a significant portion of the increase. Japan imported 5.5% more crude in volume compared to July 2025, while the shipment values soared by 87.8% over the same timeframe. These figures reflect considerably higher energy costs at a time when Japan remains heavily reliant on imported oil and other fuels for domestic use.
Exports also reached a monthly record, extending their streak of year-on-year growth to 11 months. The July increase of 23.2% followed a 19.3% rise in June. Semiconductor-related products continued to be a key driver of export expansion. Increased demand for artificial intelligence infrastructure and data centres supported shipments of technology components and equipment. Additionally, the weakening yen boosted the yen value of overseas sales, contributing to the sharp rise in Japan’s total export figures.
Technology shipments bolster export expansion
During July, the United States and China remained vital destinations for Japanese goods. Exports to the U.S. increased 22.0% from a year earlier, totaling about 2.09 trillion yen. Shipments to China rose by 25.8% to around 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components, and semiconductor-related equipment to major overseas markets, making external demand a crucial component of the country’s monthly merchandise trade performance.
These July figures follow strong trade growth in the first half of 2026. From January to June, exports increased by 13.7% compared to the same period the previous year. Meanwhile, imports expanded at a slower rate during this six-month period. According to Japan Customs data, electronic components and semiconductor-related products were among the main contributors to export growth. However, July’s data marked a shift, as rising import values exceeded the record-breaking export levels, leading to a trade deficit.
Rising crude oil prices push import values higher
The notable increase in crude oil prices significantly impacted Japan’s import expenses. The value of oil imports grew much faster than the physical volume, pushing the overall import total to a new monthly high. Currency fluctuations also elevated the yen cost of many goods priced in foreign currencies. Energy remains one of the largest components of Japan’s import basket, which explains why higher oil prices strongly influenced the overall import value.
As Japan entered the third quarter, both sides of its merchandise account experienced record trade flows. While energy costs drove a larger increase in imports, overseas demand for technology-related products continued to support exports. The 634.5 billion yen deficit indicates that despite record exports, they could not fully offset the soaring import bill. July’s data provides a clear snapshot of Japan’s expanding trade values in 2026, characterized by strong external sales coupled with sharply rising costs.