TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved historic highs in both import and export values for a single month, driven by escalating energy expenses and robust demand for technology. Imports increased by 27.8% compared to the same month last year, reaching approximately 12.15 trillion yen. Exports grew by 23.2% to about 11.51 trillion yen. The Ministry of Finance reported a trade deficit of 634.5 billion yen, as the pace of import growth exceeded that of exports during this period.
Imports hit a record for the second month in a row, largely influenced by crude oil. Japan imported 5.5% more crude in volume than in July 2025. The monetary value of these shipments skyrocketed by 87.8% over the same timeframe. These figures highlight the significant rise in energy costs amid Japan’s ongoing dependence on overseas supplies of oil and other fuels for domestic use.
Exports also reached a monthly record, marking the 11th consecutive month of year-on-year growth. The 23.2% increase in July followed a 19.3% rise in June. The export expansion was notably supported by semiconductor-related products. Increasing demand linked to artificial intelligence infrastructure and data centres facilitated shipments of technology goods and parts. Additionally, the weakening yen enhanced the yen value of exports, contributing to the substantial increase in Japan’s overall export figures.
Technology Sector Drives Export Expansion
During July, the United States and China remained primary destinations for Japanese exports. Exports to the United States grew 22.0% from a year earlier, totaling about 2.09 trillion yen. Shipments to China increased by 25.8%, reaching around 2.01 trillion yen. Japan’s manufacturing industry exports vehicles, machinery, electronic components, and semiconductor-related equipment, with external demand playing a crucial role in Japan’s monthly merchandise trade results.
The July data built upon strong trade performance during the first half of 2026, with exports from January to June rising 13.7% compared to the same period last year. Meanwhile, imports expanded at a slower rate in that half-year. According to Japan Customs, electronic components and semiconductor-related products contributed notably to export growth. However, July’s figures revealed that rising import values surpassed exports, leading to a trade deficit.
Energy Costs Drive Import Growth
The sharp increase in crude oil prices significantly impacted Japan’s import expenses. The value of oil imports surged far more rapidly than volume, resulting in a new monthly high for total imports. Fluctuations in currency exchange rates also elevated the yen cost of many foreign-priced goods. Energy remains a dominant component of Japan’s import basket, which explains why higher oil prices profoundly affected the overall import value.
As Japan entered the third quarter, it experienced record trade flows on both sides of its merchandise account. External demand for technology-related exports continued to support growth, while soaring energy costs contributed to a larger import increase. The 634.5 billion yen deficit demonstrated that record exports could not fully compensate for the record-high import bill. Consequently, July represented a month of robust external sales combined with sharply rising purchasing costs, offering a clear view of Japan’s expanding trade figures in 2026.