TOKYO, JAPAN / RankWire.AI / – Japan’s imports and exports both reached record monthly highs in July 2026, as energy costs and semiconductor demand lifted the value of trade. Imports rose 27.8% from a year earlier to about 12.15 trillion yen. Exports increased 23.2% to roughly 11.51 trillion yen. The Ministry of Finance figures showed imports grew faster than exports, leaving Japan with a trade deficit of 634.5 billion yen for the month.
July marked the second consecutive monthly record for imports by value. Crude oil played a major role in the increase as Japan faced higher energy costs. Crude import volumes rose 5.5% from July 2025, ending three months of year-on-year declines. The value of those crude shipments jumped 87.8% over the same period. Japan remains heavily dependent on imported energy, making changes in oil prices and exchange rates important factors in its merchandise trade figures.
Exports also reached an all-time monthly high and extended their year-on-year growth streak to 11 months. The 23.2% increase followed a 19.3% rise in June. Demand for semiconductor-related products remained strong, supported by investment connected with artificial intelligence and data centres. A weaker yen also raised the yen value of overseas sales and made Japanese products cheaper for some foreign buyers. The export performance exceeded the pace recorded during the previous month.
Semiconductor demand lifts Japanese exports
Trade with Japan’s two largest individual export markets increased sharply during July. Exports to the United States rose 22.0% from a year earlier, reaching about 2.09 trillion yen. Shipments to China climbed 25.8% to approximately 2.01 trillion yen. These increases came as global spending on semiconductors, electronics and AI-linked infrastructure supported demand for Japanese industrial products. Japan has a large manufacturing base in electronic components, machinery and vehicles, which account for a significant share of its overseas merchandise sales.
The Ministry of Finance data showed a notable change from the first half of 2026, when export growth had already exceeded import growth overall. Customs-based exports for January through June increased 13.7% from a year earlier. Imports rose at a slower pace during that six-month period. Semiconductor and other electronic component exports were among the strongest contributors. July reversed that monthly balance as the faster rise in import values pushed the country back into a merchandise trade deficit.
Energy costs drive record import bill
Japan’s July trade data also reflected the impact of higher crude costs on an economy that imports most of its energy needs. The sharp increase in the value of oil imports was far larger than the increase in physical volumes. That difference helped lift the total import bill to a second straight record. The weak yen added to the cost of goods priced in foreign currencies, while imported energy remained a major component of Japan’s purchases from overseas suppliers.
The record trade values came as Japan continued to report strong overseas demand for technology-related goods. Exports provided support to the economy during the April-to-June quarter, when gross domestic product expanded at an annualized rate of 1.1%. July’s figures showed that international demand remained strong at the start of the third quarter. At the same time, the 634.5 billion yen deficit highlighted the scale of Japan’s higher import costs, with record exports unable to match the value of record imports.