TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan’s trade figures hit historic highs for both imports and exports. Rising energy prices and semiconductor demand boosted trade values. Imports increased by 27.8% compared to last year, reaching about 12.15 trillion yen. Exports grew by 23.2% to roughly 11.51 trillion yen. The Ministry of Finance reported that imports grew faster than exports, resulting in a trade deficit of 634.5 billion yen for the month.
This month marked the second consecutive record for import value. The surge was driven largely by crude oil prices, as energy costs climbed. Crude oil imports increased by 5.5% from July 2025, ending three months of decline year-on-year. The value of crude shipments jumped by 87.8% over the same period. Japan remains heavily dependent on imported energy, making oil prices and exchange rates key factors in its merchandise trade data.
Exports also hit a monthly record and continued their 11-month streak of year-on-year growth. The 23.2% rise followed June’s 19.3% increase. Demand for semiconductor-related goods stayed strong, supported by investments linked to artificial intelligence and data centers. A weaker yen increased the yen value of overseas sales and made Japanese products more affordable for some foreign buyers. The export growth outpaced the previous month’s pace.
Demand for Semiconductors Spurs Japanese Export Growth
Trade with Japan’s two largest export destinations grew significantly in July. Exports to the United States rose 22.0% from last year, reaching about 2.09 trillion yen. Shipments to China increased 25.8% to roughly 2.01 trillion yen. These gains were driven by increased global spending on semiconductors, electronics, and AI-related infrastructure, supporting demand for Japanese manufacturing. Japan’s exports in electronics, machinery, and vehicles make up a large share of its overseas sales.
The Ministry of Finance data showed a shift from the first half of 2026, when overall export growth exceeded that of imports. From January to June, customs data indicated exports rose by 13.7% from a year earlier. Meanwhile, imports grew more slowly during this period. Electronic components, including semiconductors, were among the top contributors. However, July’s figures reversed this trend, as faster import growth pushed Japan back into a merchandise trade deficit.
Higher Energy Costs Push Import Expenses to New Highs
Japan’s July trade results also reflect the impact of rising crude oil prices on an economy heavily reliant on energy imports. The increase in the value of oil imports far exceeded the volume growth. This disparity contributed to the second consecutive record in total import costs. A weak yen further increased the costs of goods priced in foreign currencies, with imported energy remaining a significant part of Japan’s overseas purchases.
The record trade values occurred alongside continued strong overseas demand for Japan’s technology products. Exports supported the economy during the April-to-June quarter, when GDP grew at an annualized rate of 1.1%. The July data shows global demand remained robust at the start of the third quarter. At the same time, Japan’s 634.5 billion yen trade deficit underscores how higher import costs outpaced the value of exports, despite record-breaking trade figures.