TOKYO, Japan / ConSynSer / – Preliminary data from the Ministry of Finance indicated that Japan experienced a trade shortfall of 536.6 billion yen in September, as imports outpaced exports. During this period, exports increased by 16.7% year-on-year to 10.9723 trillion yen, while imports grew by 18.9% to 11.5088 trillion yen. The resulting deficit was approximately $3.4 billion, according to Xinhua News Agency.
Exports marked their 13th consecutive month of growth, driven by robust demand for semiconductors and chip manufacturing equipment. Xinhua also highlighted increased interest in products related to artificial intelligence. This data represents Japan’s fifth consecutive month of trade deficits, although the September shortfall was smaller than the 1.11 trillion yen deficit recorded in August. Import growth decelerated from a 28.0% increase in August, partly due to a decline in crude oil imports.
The rise in energy costs has significantly impacted Japan’s trade balance this year. As a resource-scarce nation, Japan depends heavily on oil imports shipped through the Strait of Hormuz. Disruptions in the Middle East have prompted importers to pay higher prices to secure supplies via alternative routes. Brent crude oil prices have climbed from roughly $70 per barrel in February to approximately $110 a barrel.
First-half trade deficit nearly doubles
For the April to September period, Japan registered a trade deficit of 2.81 trillion yen, roughly $17.8 billion, nearly twice the amount from the same period last year. During this time, exports expanded by 18.4% to 63.5 trillion yen, while imports increased by 20.4% to 66.3 trillion yen, both reaching record highs for Japan.
These figures reflect strong international demand for Japanese technology products alongside escalating import costs. Semiconductor-related exports have supported Japan’s trade figures through much of 2026. Japan also posted record trade values in July, as imports outpaced exports. Rising fuel prices continue to impact a broad range of sectors, including plastics and shipping expenses.
Weak yen and rate hikes influence future prospects
A depreciating yen has increased import costs, with the US dollar trading near 150 yen in recent weeks. The Bank of Japan has been gradually raising interest rates, partly to bolster the currency. Last month, it increased its benchmark rate to 1.25% from 1.0%, the highest in 31 years. The central bank’s policy board is scheduled to meet again next week.
The Bank aims for inflation of around 2%. Experts suggest that oil prices are unlikely to fall soon, which could continue to pressure Japan’s import expenses in the months ahead. Upcoming monthly trade data will help determine if export growth can sustain itself despite rising energy costs. The Ministry of Finance releases preliminary trade figures each month.