TOKYO, Japan / ConSynSer / – According to preliminary data from the Ministry of Finance, Japan experienced a trade shortfall of 536.6 billion yen in September, driven by faster import growth compared to exports. During this month, exports increased by 16.7% year-over-year to 10.9723 trillion yen, while imports surged 18.9% to 11.5088 trillion yen. The resulting deficit was approximately $3.4 billion, as reported by Xinhua News Agency.
This marks the 13th consecutive month of rising exports, supported by robust demand for semiconductors and chip manufacturing equipment, as well as products linked to artificial intelligence. Despite this, Japan’s trade deficit extended for the fifth straight month, although the September shortfall was smaller than August’s 1.11 trillion yen. The slower import growth from August’s 28.0% increase was partly due to a decline in crude oil arrivals.
Rising energy prices have negatively impacted Japan’s trade balance this year. The resource-scarce nation relies heavily on oil imports, primarily via shipping routes through the Strait of Hormuz. Disruptions in the Middle East have pushed importers to pay more for alternative routes, with Brent crude rising from around $70 a barrel in February to approximately $110 a barrel.
Trade deficit in the first half nearly doubles
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, roughly $17.8 billion, almost twice the amount from the same period last year. Exports during this period grew 18.4% to 63.5 trillion yen, while imports increased 20.4% to 66.3 trillion yen, both reaching record highs for Japan.
These figures reflect strong global demand for Japanese technology, especially semiconductors, which supported exports throughout 2026. Earlier in July, Japan recorded record trade values, with imports surpassing exports. Rising fuel prices also impact various sectors, including plastics and shipping costs.
Weak yen and rate hikes influence future prospects
The yen’s depreciation has increased import costs, with the US dollar recently trading near 150 yen. The Bank of Japan has been gradually increasing interest rates, partly to bolster the yen, raising its benchmark rate to 1.25% from 1.0% last month — the highest in 31 years. The central bank’s policy board is scheduled to meet again next week.
While aiming for about 2% inflation, analysts believe that oil prices are unlikely to decline soon, which could sustain upward pressure on Japan’s import expenses. Upcoming monthly trade data will reveal if export growth can continue to offset rising energy costs. The Ministry of Finance releases preliminary trade figures each month.