TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved historic high monthly totals for both imports and exports, driven by rising energy prices and robust demand for technology products, which together pushed overall trade figures upward. Imports increased by 27.8% compared to the previous year, reaching approximately 12.15 trillion yen, while exports grew by 23.2% to around 11.51 trillion yen. The Ministry of Finance announced a trade deficit of 634.5 billion yen, indicating that import growth outpaced exports during the month.
The import figure marked a second consecutive monthly record, with crude oil making up a significant portion of the rise. Japan imported 5.5% more crude by volume than in July 2025, with the overall value of those imports soaring by 87.8% over the same period. These figures reflected considerably higher energy costs amid Japan’s ongoing reliance on imports of oil and other fuels to meet domestic energy needs.
Exports also reached a monthly peak, extending their year-on-year growth streak to 11 months. The 23.2% increase in July followed a 19.3% rise in June. Semiconductor-related items remained a key driver of export expansion, supported by increased demand for artificial intelligence infrastructure and data centre equipment, which fueled shipments of technological components. Furthermore, the weakening of the yen elevated the yen-denominated value of overseas sales, contributing to the substantial growth in Japan’s export totals.
Technology-related shipments bolster export expansion
During July, the main destinations for Japanese exports remained the United States and China. Exports to the United States increased by 22.0% from a year earlier, reaching approximately 2.09 trillion yen, while shipments to China rose by 25.8%, totaling about 2.01 trillion yen. Japan’s manufacturing sector supplies a range of products, including vehicles, machinery, electronic components, and semiconductor equipment, to key markets abroad, making external demand a vital aspect of the country’s monthly merchandise trade results.
The July data followed strong trade growth in the first half of 2026, with exports from January to June increasing by 13.7% compared to the same period the previous year. During that half-year span, imports grew at a slower rate. According to Japan Customs data, electronic components and semiconductor-related products contributed notably to the export increase. However, July’s figures shifted the monthly balance, as rising import values outstripped the record-breaking exports, resulting in a trade deficit.
Rising crude oil prices push import values higher
The dramatic increase in crude oil prices had a clear influence on Japan’s import expenses, with the value of oil imports rising significantly faster than physical volumes, thus setting a new monthly high for total imports. Fluctuations in exchange rates also played a role, raising the yen cost of goods priced in foreign currencies. Energy products remained among the largest categories in Japan’s import basket, which largely explains why higher oil prices had such a pronounced effect on the overall import bill.
As Japan entered the third quarter, it posted record trade flows on both sides of its merchandise account. Continued overseas demand for technology-related exports supported the growth in shipments, while soaring energy costs contributed to a larger increase in imports. The 634.5 billion yen deficit indicated that, despite record exports, the overall import bill reached new heights. Consequently, July reflected a month of both strong external sales and sharply rising purchasing costs, offering a clear snapshot of Japan’s expanding trade figures in 2026.