TOKYO, JAPAN / RankWire.AI / – Japan posted record monthly values for both imports and exports in July 2026, as higher energy costs and strong technology demand lifted total trade. Imports climbed 27.8% from a year earlier to about 12.15 trillion yen. Exports rose 23.2% to roughly 11.51 trillion yen. The Ministry of Finance reported a trade deficit of 634.5 billion yen because imports grew faster than overseas shipments during the month.
Imports reached a record for the second consecutive month, with crude oil accounting for a large part of the increase. Japan imported 5.5% more crude by volume than in July 2025. The value of those shipments surged 87.8% over the same period. The figures reflected much higher energy costs at a time when Japan continued to rely heavily on overseas supplies of oil and other fuels for domestic consumption.
Exports also set a monthly record and extended their year-on-year growth run to 11 months. July’s 23.2% increase followed a 19.3% rise in June. Semiconductor-related products remained an important source of export growth. Demand linked to artificial intelligence infrastructure and data centres supported shipments of technology products and components. The weaker yen also increased the yen value of overseas sales, adding to the sharp rise in Japan’s export total.
Technology shipments support export growth
The United States and China remained key destinations for Japanese goods during July. Exports to the United States rose 22.0% from a year earlier to about 2.09 trillion yen. Shipments to China increased 25.8% to around 2.01 trillion yen. Japan’s manufacturing sector supplies vehicles, machinery, electronic components and semiconductor-related equipment to major overseas markets, making external demand an important part of the country’s monthly merchandise trade performance.
The July figures followed strong trade growth during the first half of 2026. Exports from January through June increased 13.7% compared with the same period a year earlier. Imports grew at a slower pace during that six-month stretch. Japan Customs data showed that electronic components and semiconductor-related products ranked among the stronger contributors to export growth. July changed the monthly balance as rising import values outpaced the record level of exports and produced a deficit.
Crude oil costs lift import total
The sharp rise in crude costs had a clear impact on Japan’s import bill. Oil import values increased far faster than physical volumes, pushing total imports to a new monthly high. Currency movements also raised the yen cost of many goods priced in foreign currencies. Energy remained one of the largest parts of Japan’s import basket, which helped explain why higher oil prices had such a strong effect on the overall value of purchases from overseas.
Japan entered the third quarter with record trade flows on both sides of its merchandise account. Overseas demand for technology-related products continued to support exports, while energy costs drove a larger increase in imports. The 634.5 billion yen deficit showed that record exports did not fully offset the record import bill. July therefore combined strong external sales with sharply higher purchasing costs, producing one of the clearest monthly snapshots of Japan’s expanding trade values in 2026.