TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan recorded historic monthly totals for both imports and exports, driven by soaring energy prices and robust demand for technology products, which boosted overall trade figures. Imports increased by 27.8% from the previous year to approximately 12.15 trillion yen. Exports grew 23.2% to about 11.51 trillion yen. The Ministry of Finance announced a trade deficit of 634.5 billion yen, as import growth outstripped that of exports during the month.
For the second straight month, imports hit a record level, with crude oil accounting for a significant portion of the increase. Japan’s crude imports rose by 5.5% in volume compared to July 2025, while the value of these shipments soared by 87.8%. These figures reflect substantially higher energy costs amid Japan’s ongoing reliance on international supplies of oil and other fuels for domestic use.
Exports also set 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. A key driver of export expansion remained semiconductor-related products. Demand linked to artificial intelligence infrastructure and data centres supported shipments of technological goods and components. Additionally, the depreciation of the yen amplified the yen value of overseas sales, further contributing to the substantial rise in Japan’s export total.
Technological exports bolster overall growth
During July, the United States and China remained the primary destinations for Japanese exports. Shipments to the United States increased 22.0% from a year earlier, reaching about 2.09 trillion yen. Exports to China went up by 25.8%, totaling approximately 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components, and semiconductor-related equipment to major global markets, making foreign demand a crucial factor in the country’s monthly trade performance.
These July figures followed a strong performance during the first half of 2026, with exports from January to June rising 13.7% year-on-year. During this period, imports grew at a more gradual pace. According to Japan Customs data, electronic components and semiconductor-related products were among the main contributors to export growth. However, July’s data shifted the trade balance, as rising import values surpassed the record-high exports, resulting in a trade deficit.
Rising crude oil prices drive import figures higher
The notable increase in crude oil costs significantly impacted Japan’s import expenses. While physical volumes of oil imports increased marginally, the total import value surged due to higher prices. Currency fluctuations also contributed to elevating the yen cost of goods priced in foreign currencies. Energy products continue to represent a major share of Japan’s import basket, explaining why rising oil prices had such a pronounced effect on total import values.
As Japan entered the third quarter, trade flows reached record levels on both sides of its merchandise account. While overseas demand for technology-related exports continued to support shipment volumes, energy prices pushed import totals higher. The resulting 634.5 billion yen deficit indicated that, despite record export figures, the import bill grew even faster. July, therefore, encapsulated a month of strong external sales paired with sharply increased purchase costs, offering one of the clearest snapshots of Japan’s expanding trade values in 2026.