TOKYO, JAPAN / RankWire.AI / – In Japan, July 2026 saw both imports and exports hitting unprecedented monthly figures, fueled by rising energy prices and heightened semiconductor demand, which boosted trade values. Imports increased by 27.8% from the previous year to approximately 12.15 trillion yen. Exports also grew by 23.2%, reaching around 11.51 trillion yen. According to the Ministry of Finance, imports outpaced exports, resulting in a trade deficit of 634.5 billion yen for the month.
This month marked the second consecutive record for import value. The rise in crude oil imports played a significant role in this surge, as Japan faced increased energy expenses. The volume of crude imports grew by 5.5% compared to July 2025, ending a three-month period of decline. At the same time, the value of these crude shipments soared by 87.8% over the same period. As a nation heavily reliant on imported energy, fluctuations in oil prices and exchange rates are critical factors shaping Japan’s trade figures.
Exports also achieved an all-time monthly peak and extended their growth streak to 11 months. The 23.2% rise followed a 19.3% increase in June. The strong demand for semiconductor-related products persisted, supported by investments linked to artificial intelligence and data centers. Additionally, a weaker yen increased the yen value of overseas sales and made Japanese products more affordable for some foreign buyers. The export growth rate surpassed that of the previous month.
Semiconductor Demand Propels Japanese Export Growth
Trade with Japan’s two leading export destinations saw substantial increases in July. Exports to the United States rose 22.0% year-on-year, reaching about 2.09 trillion yen. Meanwhile, shipments to China jumped 25.8% to roughly 2.01 trillion yen. These gains were driven by global expenditures on semiconductors, electronics, and AI-related infrastructure, which supported demand for Japanese industrial goods. Japan’s extensive manufacturing base in electronic components, machinery, and vehicles remains a major contributor to its overseas merchandise sales.
The Ministry of Finance data revealed a significant shift from the first half of 2026, when export growth already surpassed that of imports overall. Customs data showed that from January to June, exports increased by 13.7% compared to the previous year, while imports grew at a slower rate. Semiconductor and electronic component exports were among the top performers. However, July reversed this trend, as faster growth in import values pushed Japan back into a merchandise trade deficit.
Rising Energy Prices Contribute to Record Import Expenses
Japan’s July trade data also reflects the impact of increased crude oil costs on an economy that relies heavily on energy imports. The substantial rise in the value of oil imports was primarily due to higher prices rather than increased physical volumes. This discrepancy contributed to a second consecutive record in the total import bill. The weak yen also played a role, making goods priced in foreign currencies more expensive, while imported energy remained a significant part of Japan’s overseas purchases.
The record trade values coincided with sustained overseas demand for technology-related products. Exports supported Japan’s economy during the April-June quarter, when gross domestic product grew at an annualized rate of 1.1%. July’s data indicates that international demand continued to be robust at the start of the third quarter. Nevertheless, the 634.5 billion yen trade deficit underscores the impact of higher import costs, with record exports unable to offset record import values.