TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan’s trade metrics reached historic highs for both imports and exports, driven by soaring energy expenses and robust demand for technology products. Imports increased by 27.8% compared to the previous year, totaling approximately 12.15 trillion yen. Exports grew 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 during the month.
This was the second consecutive month to see imports reach a record level, with crude oil accounting significantly for the surge. Japan imported 5.5% more crude in volume than in July 2025, with the value of these shipments soaring by 87.8% over the same period. These figures reflect much higher energy prices at a time when Japan remains heavily dependent on overseas supplies of oil and other fuels for domestic use.
Exports also hit a monthly peak, marking the 11th consecutive month of year-on-year growth. The 23.2% increase in July followed a 19.3% rise in June. Technology-related exports, including semiconductor products, remained vital to the overall growth. External demand linked to artificial intelligence infrastructure and data centres bolstered shipments of electronic components and tech equipment. Additionally, the weakening yen increased the yen value of international sales, further amplifying Japan’s export figures.
Technology Exports Drive the Expansion of Japan’s Outbound Trade
During July, the United States and China remained primary markets for Japanese exports. Shipments to the United States climbed 22.0% year-on-year, reaching around 2.09 trillion yen, while 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 equipment to key global markets, making external demand a crucial component of the country’s monthly trade performance.
The July data follows a strong first half of 2026, with exports from January to June increasing by 13.7% compared to the same period a year earlier. During this period, imports grew more slowly. Japan Customs data indicated that electronic components and semiconductor-related products significantly contributed to export gains. However, July’s figures revealed that rising import values surpassed the record exports, resulting in a trade deficit.
Rising Oil Prices Push Import Values Higher
The notable increase in crude oil prices clearly affected Japan’s import bill. The value of oil imports surged much faster than physical volumes, leading to a new monthly record for total imports. Exchange rate movements also contributed to higher yen costs for goods priced in foreign currencies. Energy remains a major component of Japan’s import basket, which explains why rising oil prices had such a significant impact on the overall value of overseas purchases.
As Japan entered the third quarter, it experienced record trade flows on both sides of its merchandise account. Demand for technology-related exports continued to support outbound shipments, while soaring energy costs pushed imports higher. The 634.5 billion yen deficit indicates that despite record exports, the import bill increased even more. July’s combination of strong international sales and rising purchase prices offers a clear snapshot of Japan’s expanding trade figures in 2026.