TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved record-high values in both imports and exports, driven by rising energy prices and robust demand for technology. The total trade volume increased as imports grew 27.8% from the previous year, reaching approximately 12.15 trillion yen. Meanwhile, exports climbed 23.2% to about 11.51 trillion yen. The Ministry of Finance announced a trade deficit of 634.5 billion yen, as import growth outpaced overseas shipments during the month.
This marked the second consecutive month with record-breaking import figures, largely attributable to crude oil. Japan’s crude oil imports increased by 5.5% in volume compared to July 2025, with the value of those imports soaring by 87.8% over the same period. These figures highlight the ongoing surge in energy costs amid Japan’s continued reliance on foreign sources of oil and other fuels to meet domestic needs.
Exports also reached a monthly high, extending their year-on-year growth streak to 11 months. The 23.2% rise in July followed a 19.3% increase in June. A significant contributor to this growth was semiconductor-related products, with demand linked to artificial intelligence infrastructure and data centres supporting shipments of technology goods and components. The depreciated yen further increased the yen value of exports, amplifying the overall rise in Japan’s export figures.
Technology Exports Drive Growth
During July, the United States and China remained key markets for Japanese exports. Shipments to the U.S. increased 22.0% year-on-year, reaching around 2.09 trillion yen. Exports to China rose 25.8% to approximately 2.01 trillion yen. Japan’s manufacturing sector continues to supply vehicles, machinery, electronic components, and semiconductor-related equipment to major overseas markets, making external demand a vital element of the country’s monthly trade performance.
These July figures follow a period of strong trade growth in the first half of 2026, with exports from January through June expanding by 13.7% compared to the same months in the previous year. Imports grew at a slower pace during this period. According to Japan Customs data, electronic components and semiconductor-related products were among the key drivers of export growth. However, July’s results shifted the balance, as rising import values exceeded the record-breaking exports, resulting in a trade deficit.
Rising Oil Prices Boost Import Values
The significant increase in crude oil prices had a notable impact on Japan’s import costs. Although physical volumes of oil imports rose by only 5.5%, the value of these shipments surged by 87.8%, pushing total imports to a new monthly high. Currency fluctuations also played a role, elevating the yen cost of goods priced in foreign currencies. Energy remains a dominant component of Japan’s import basket, which explains why the escalation in oil prices strongly influenced the overall value of imports.
As Japan entered the third quarter, trade flows on both sides of its merchandise account reached record levels. External demand for technology-related products continued to support exports, while energy prices contributed to a larger increase in imports. The 634.5 billion yen deficit indicates that, despite record exports, the overall import bill was higher. July’s data encapsulates a period of strong external sales paired with sharply rising purchasing costs, providing a clear snapshot of Japan’s expanding trade values in 2026.