TOKYO, Japan / ConSynSer / – Preliminary figures from the Ministry of Finance reveal that Japan experienced a trade shortfall of 536.6 billion yen in September, driven by a faster increase in imports compared to exports. During this period, exports grew by 16.7% year-on-year to 10.9723 trillion yen, while imports surged by 18.9% to 11.5088 trillion yen. The trade deficit equated to roughly $3.4 billion, according to Xinhua News Agency.
Exports marked their 13th straight month of growth, buoyed by robust demand for semiconductors and equipment used in chip manufacturing. Demand for products related to artificial intelligence was also highlighted by Xinhua. The data indicates Japan’s fifth consecutive month of trade deficits, although the shortfall in September was smaller than the 1.11 trillion yen deficit recorded in August. The pace of import growth slowed from August’s 28.0% increase, partly due to a decline in crude oil imports.
This year, rising energy prices have exerted pressure on Japan’s trade balance. As a resource-scarce country, Japan imports nearly all of its oil, primarily via shipping routes through the Strait of Hormuz. Disruptions in the Middle East have led importers to incur higher costs to secure supplies through alternative routes. Brent crude oil prices have climbed from about $70 a barrel in February to around $110 a barrel.
First-half trade deficit nearly doubles
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, approximately $17.8 billion, nearly doubling the figure from the previous year. During this period, exports expanded by 18.4% to 63.5 trillion yen, while imports increased by 20.4% to 66.3 trillion yen, both reaching record levels for Japan.
These numbers reflect strong international demand for Japanese technology products alongside a rising bill for imports. Semiconductor-related goods have supported exports for much of 2026. Japan also recorded record trade values in July, with imports surpassing exports. Elevated fuel costs continue to impact various sectors, including plastics manufacturing and shipping expenses.
Impact of a weak yen and interest rate hikes on outlook
The weakening yen has contributed to higher import costs, with the US dollar trading near 150 yen in recent weeks. To support its currency, the Bank of Japan has been gradually raising interest rates. Last month, the rate was increased to 1.25% from 1.0%, reaching the highest level in 31 years. The central bank’s policy board is scheduled to meet again next week.
Aiming for an inflation rate of about 2%, the Bank of Japan faces ongoing challenges, as analysts suggest that oil prices are unlikely to decline soon, which could continue to pressure import costs. Future monthly trade data will reveal whether export growth can sustain itself amid rising energy expenses. The Ministry of Finance releases preliminary trade figures each month.