TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan’s trade figures reached unprecedented levels for both imports and exports, boosted by higher energy prices and strong semiconductor demand, which elevated the overall trade values. Imports increased by 27.8% compared to the same month in the previous year, totaling approximately 12.15 trillion yen. Exports grew by 23.2% to about 11.51 trillion yen. According to data from the Ministry of Finance, imports expanded at a faster rate than exports, resulting in a trade deficit of 634.5 billion yen for the month.
This month marked only the second time in a row that Japan recorded a record high in import value. The surge in crude oil imports played a significant part in this increase, as energy costs climbed. Crude oil import volumes rose by 5.5% from July 2025, ending a three-month period of year-on-year declines. Concurrently, the value of crude shipments surged by 87.8% over the same period. Japan’s heavy reliance on imported energy makes changes in oil prices and exchange rates critical factors influencing its merchandise trade statistics.
Meanwhile, exports also hit an all-time monthly record and extended their streak of year-on-year growth to 11 months. The 23.2% rise followed a 19.3% increase in June. Demand for semiconductor-related products continued to be robust, supported by investments linked to artificial intelligence and data centers. A weakening yen contributed to higher yen-denominated overseas sales and made Japanese goods more affordable for certain foreign buyers. Notably, export growth outpaced that of the previous month.
Demand for Semiconductors Boosts Japan’s Export Performance
Japan’s two largest export markets experienced significant growth in July. Exports to the United States climbed 22.0% from the prior year, reaching around 2.09 trillion yen. Similarly, shipments to China increased by 25.8%, totaling approximately 2.01 trillion yen. The rise was driven by global demand for semiconductors, electronics, and AI-related infrastructure, which supported Japan’s industrial exports. The country’s large manufacturing base in electronic components, machinery, and vehicles accounts for a significant share of its overseas sales.
Data from the Ministry of Finance indicated a notable shift from the first half of 2026, when overall export growth had already exceeded import growth. Between January and June, customs data showed exports increased by 13.7% year-over-year, with import growth being comparatively slower. Electronic components and semiconductor exports were among the strongest contributors. However, July reversed this trend, as the faster increase in import values pushed Japan back into a merchandise trade deficit.
Rising Energy Costs Contribute to Record Import Expenses
Japan’s trade data for July also reflected the impact of rising crude oil costs on an economy that relies heavily on energy imports. The value of oil imports rose sharply, far surpassing the increase in physical volume, which contributed to the total import bill reaching a second consecutive record high. The weak yen further elevated costs for goods priced in foreign currencies, with imported energy remaining a key component of Japan’s imports from overseas suppliers.
Despite record trade values, Japan’s economy continued to show resilience in exports driven by strong external demand for technology-related goods. During the April-to-June quarter, exports supported economic growth, with gross domestic product expanding at an annualized rate of 1.1%. July’s figures indicate that international demand stayed firm into the start of the third quarter. The 634.5 billion yen trade deficit underscores the impact of higher import costs, as record exports could not offset the record-high import values.