TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved record-breaking figures for both its imports and exports, driven by rising energy prices and robust demand for technology products. Imports surged 27.8% from the previous year to approximately 12.15 trillion yen, while exports increased by 23.2% to about 11.51 trillion yen. According to the Ministry of Finance, the country experienced a trade deficit of 634.5 billion yen as import growth outpaced overseas shipments for the month.
This marks the second consecutive month of record import figures, with crude oil constituting a significant part of the rise. Japan imported 5.5% more crude by volume compared to July 2025, with the total shipment value soaring by 87.8% over the same period. These numbers reflect substantially higher energy costs amidst Japan’s ongoing reliance on imported oil and fuels for domestic use.
Exports also hit a monthly record, maintaining a growth streak for 11 consecutive months. The 23.2% increase in July followed a 19.3% rise in June. Semiconductor-related goods continued to drive export expansion, supported by increased demand for artificial intelligence infrastructure and data centre equipment. The depreciated yen increased the yen value of overseas sales, further amplifying Japan’s export growth.
Technology Exports Propel Overall Growth
During July, Japan’s primary markets remained the United States and China. Exports to the U.S. increased by 22.0% year-on-year, reaching roughly 2.09 trillion yen. Shipments to China grew 25.8% to approximately 2.01 trillion yen. Japan’s manufacturing sector exports vehicles, machinery, electronic components, and semiconductor equipment, making external demand a key factor in the country’s monthly trade performance.
The July data reflected strong trade momentum earlier in 2026, with the first half showing a 13.7% rise in exports from January through June compared to the same period the previous year. Imports grew more slowly in this period, with electronic components and semiconductor-related products among the leading contributors to export gains. However, July’s figures tipped the balance as higher import values surpassed record exports, resulting in a trade deficit.
Crude Oil Prices Drive Import Expenses Higher
The steep increase in crude oil prices significantly impacted Japan’s import costs. The value of oil imports rose much faster than physical volume, pushing total imports to a new monthly peak. Currency fluctuations also elevated the yen cost of many foreign-priced goods. Energy remained a major component of Japan’s import portfolio, explaining why soaring oil prices had a profound effect on overall import values.
As it entered the third quarter, Japan experienced record trade flows on both sides of its merchandise account. While overseas demand for technology exports remained strong, rising energy costs led to a larger import increase. The 634.5 billion yen deficit highlighted that record exports did not fully offset the record import bill. July’s trade data illustrates a month of high external sales combined with sharply increased purchasing costs, capturing a clear picture of Japan’s expanding trade figures in 2026.