TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved historic highs in both its import and export values for a single month, fueled by increased energy prices and robust demand for technology products. Imports surged 27.8% from the previous year, reaching approximately 12.15 trillion yen. Exports increased by 23.2%, totaling about 11.51 trillion yen. The Ministry of Finance indicated a trade deficit of 634.5 billion yen, as import growth outpaced overseas shipments during the same period.
For the second month in a row, imports hit a record high, with crude oil accounting significantly for the rise. Japan’s crude oil imports increased by 5.5% in volume compared to July 2025, while their value soared by 87.8%. These figures highlight the elevated energy costs during a period when Japan remains heavily dependent on imported oil and other fuels for its domestic needs.
Exports also reached a monthly peak, marking the 11th consecutive month of year-on-year growth. The 23.2% rise in July followed a 19.3% increase in June. Semiconductor-related exports continued to be a vital factor in boosting overall exports, supported by demand for artificial intelligence infrastructure and data centers, which in turn drove shipments of technological components. Additionally, the depreciated yen contributed to higher yen-denominated values of overseas sales, further fueling the sharp increase in Japan’s export figures.
Technology exports bolster overall growth
During July, the United States and China remained primary destinations for Japanese exports. Shipments to the United States grew 22.0% year-on-year to around 2.09 trillion yen, while those to China rose 25.8% to roughly 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components, and semiconductor-related equipment to key overseas markets, making external demand a crucial component of the country’s monthly trade performance.
The July figures built upon the strong trade growth seen in the first half of 2026. From January to June, exports increased by 13.7% compared with the same period the previous year, while imports grew at a slower rate. Japan Customs data revealed that electronic components and semiconductor-related products were among the leading contributors to export growth. However, in July, the trade balance shifted as rising import values surpassed the record-high export figures, leading to a trade deficit.
Rising oil prices drive import value higher
The significant increase in crude oil costs directly impacted Japan’s import expenses. Import values for oil jumped much faster than physical volumes, pushing total imports to a new monthly record. Currency fluctuations also contributed by elevating the yen cost of many foreign-priced goods. Energy remained a major component of Japan’s import basket, explaining why higher oil prices significantly influenced the overall import expenditure from abroad.
As Japan entered the third quarter, both sides of its merchandise trade set new records. External demand for technology-related exports continued to support growth, while escalating energy prices led to a larger import bill. The 634.5 billion yen trade deficit demonstrated that record export levels did not fully compensate for the surge in import costs. Consequently, July’s trade data reflects a month of strong external sales coupled with sharply rising procurement expenses, offering one of the clearest glimpses of Japan’s expanding trade values in 2026.