TOKYO, JAPAN / RankWire.AI / – In July 2026, Japan achieved record-breaking figures for both its imports and exports in a single month, driven by rising energy prices and robust demand for technology products, which boosted overall trade activity. Imports surged 27.8% from the same month last year to approximately 12.15 trillion yen. Exports increased by 23.2% to about 11.51 trillion yen. According to the Ministry of Finance, the nation faced a trade deficit of 634.5 billion yen as import growth outpaced overseas shipments during this period.
The increase in imports marked the second consecutive month of record values, with crude oil significantly contributing to this rise. Japan imported 5.5% more crude by volume compared to July 2025, while the total value of these shipments soared by 87.8% over the same timeframe. These figures reflect considerably higher energy costs amid Japan’s continued heavy reliance on foreign sources of oil and other fuels for domestic use.
Meanwhile, exports also reached a monthly peak, extending their positive year-on-year growth to an 11-month streak. The 23.2% rise in July followed a 19.3% increase in June. Semiconductor-related goods remained crucial to export growth, with demand from artificial intelligence infrastructure and data centers supporting shipments of technology components. Additionally, the weakening yen increased the yen value of international sales, contributing to the sharp rise in Japan’s export total.
Technology exports bolster overall growth
During July, the United States and China remained major markets for Japanese goods. Exports to the U.S. grew 22.0% from a year earlier, reaching approximately 2.09 trillion yen, while shipments to China increased 25.8%, totaling around 2.01 trillion yen. Japan’s manufacturing sector supplies key products such as vehicles, machinery, electronic components, and semiconductor-related equipment to these major international markets, making external demand an important factor in the country’s monthly trade performance.
The July data follows a period of strong trade expansion in the first half of 2026, with exports rising 13.7% from January through June compared to the same months the previous year. Meanwhile, imports grew at a slower rate during that period. According to Japan Customs, electronic components and semiconductor-related items were among the key contributors to export growth. However, July saw the monthly trade balance shift as rising import values outpaced the record high exports, resulting in a trade deficit.
Rising crude oil prices boost import figures
The notable increase in crude oil costs had a clear influence on Japan’s import expenses. Although physical volumes of oil imports rose modestly, the total import value climbed sharply, reaching a new monthly record. Currency fluctuations also elevated the yen cost of many goods priced in foreign currencies. Energy products continued to represent a significant portion of Japan’s import basket, which explains why higher oil prices significantly affected the overall import value.
As Japan entered the third quarter, it experienced record trade flows on both the import and export sides of its merchandise account. External demand for technology-related products continued to support export figures, while energy costs drove a larger increase in imports. The 634.5 billion yen deficit indicated that despite record exports, the overall import bill remained higher. July showcased a combination of strong external sales and sharply rising purchase costs, illustrating one of the clearest snapshots of Japan’s expanding trade values in 2026.