TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan recorded historic highs in both its imports and exports, with trade figures reaching new records, driven by rising energy prices and robust technology demand. Imports grew 27.8% compared to the previous year, totaling approximately 12.15 trillion yen. Exports increased by 23.2%, reaching about 11.51 trillion yen. According to the Ministry of Finance, the trade deficit amounted to 634.5 billion yen, as import growth outpaced overseas shipments during the same period.
For the second consecutive month, imports hit a record high, largely due to increased crude oil imports, which accounted for a significant portion of the rise. Japan’s crude oil imports rose by 5.5% in volume compared to July 2025, while the value of these shipments surged by 87.8% over the same period. The data reflected much higher energy costs at a time when Japan continued to rely heavily on imported oil and other fuels for domestic consumption.
Meanwhile, export figures also set a new monthly record, extending their growth streak to 11 months. The 23.2% increase in July followed a 19.3% rise in June. Semiconductor-related products remained a key driver of export growth, supported by demand from artificial intelligence infrastructure and data centres, which bolstered shipments of technology goods and components. The depreciation of the yen further increased the yen value of overseas sales, contributing to the substantial rise in Japan’s total exports.
Technology Exports Drive Continued Growth
During July, the United States and China remained prominent markets for Japanese exports. Shipments to the United States grew by 22.0% year-on-year, reaching approximately 2.09 trillion yen, while exports to China increased by 25.8%, totaling around 2.01 trillion yen. Japan’s manufacturing sector exports vehicles, machinery, electronic components, and semiconductor-related equipment to key international markets, making external demand a vital component of its monthly trade results.
These July figures follow a period of strong trade expansion in the first half of 2026, with exports from January to June rising by 13.7% compared to the same months in the previous year. Meanwhile, imports grew at a slower rate during this period. Japan Customs data highlighted electronic components and semiconductor-related products as significant contributors to export growth. However, July marked a shift, as rising import values outstripped exports, leading to a trade deficit.
Rising Crude Oil Prices Boost Import Values
The notable increase in crude oil prices had a direct impact on Japan’s import expenses. The value of oil imports rose at a much faster rate than physical volumes, pushing the overall import figures to a new monthly peak. Currency fluctuations also elevated the yen cost of many foreign-priced goods. Energy remains one of the largest categories in Japan’s import portfolio, which partly explains why the surge in oil prices had such a strong influence on the overall import value.
As Japan entered the third quarter, trade flows on both sides of its merchandise account reached record levels. External demand for technology-related exports continued to support growth, while increasing energy prices contributed to a larger import bill. The 634.5 billion yen deficit indicated that despite record exports, the import costs rose even faster. July thus combined high external sales with sharply elevated purchasing costs, offering a clear snapshot of Japan’s expanding trade values in 2026.