TOKYO, Japan / ConSynSer / – Preliminary figures from the Ministry of Finance indicate that Japan experienced a trade shortfall of 536.6 billion yen in September, driven by faster-growing imports compared to exports. During the same month, exports increased by 16.7% year-on-year to 10.9723 trillion yen, while imports climbed 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 month in a row of rising exports, supported by robust demand for semiconductors and chip manufacturing equipment. Additionally, demand for AI-related products has contributed to the export momentum. Despite the ongoing trade deficits, the September shortfall decreased from 1.11 trillion yen in August. The pace of import growth slowed from a 28.0% increase in August, partly due to a decline in crude oil shipments.
Japan’s trade balance this year has been significantly impacted by surging energy prices. As a resource-scarce country, Japan relies heavily on oil imports via shipping routes through the Strait of Hormuz. Disruptions in the Middle East have caused importers to pay higher prices to secure supplies through alternative routes. Brent crude oil prices have risen from around $70 per barrel in February to approximately $110 a barrel.
First-half deficit nearly doubles, reaching 2.81 trillion yen
Between April and September, Japan recorded a trade deficit of 2.81 trillion yen, roughly $17.8 billion, nearly twice the amount from the previous year. During this period, exports increased by 18.4% to 63.5 trillion yen, while imports grew by 20.4% to 66.3 trillion yen, both reaching historic highs for Japan.
The data reflect strong global demand for Japanese technology products alongside rising import expenses. Semiconductor-related exports have supported Japan’s trade figures for much of 2026. In July, Japan posted record trade values in July when imports outpaced exports. Elevated fuel costs continue to influence various sectors, including plastics and shipping.
Yen weakness and rate hikes influence future trade outlook
The yen’s decline has increased import costs, with the US dollar recently trading around 150 yen. The Bank of Japan has been gradually raising interest rates, partly to bolster the yen. 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 an inflation rate of approximately 2%. Analysts believe that oil prices are unlikely to fall soon, which could sustain upward pressure on Japan’s import expenses in the coming months. Future monthly trade data will reveal whether export growth can continue to offset the rising energy costs. The Ministry of Finance releases preliminary trade figures each month.