TOKYO, Japan / ConSynSer / – According to preliminary data from the Ministry of Finance, Japan faced a trade shortfall of 536.6 billion yen in September as imports expanded at a quicker pace than exports. During this period, exports increased by 16.7% year-on-year to 10.9723 trillion yen, while imports rose by 18.9% to 11.5088 trillion yen. The resulting deficit was approximately $3.4 billion, as reported by Xinhua News Agency.
This marked the 13th straight month of rising exports, driven by robust demand for semiconductors and equipment used in chip manufacturing. Xinhua also highlighted increased demand for products associated with artificial intelligence. The data indicated Japan’s fifth consecutive month of trade deficits, although the September shortfall was smaller than the 1.11 trillion yen recorded in August. Import growth decelerated from a 28.0% increase in August, partly due to a decline in crude oil shipments.
Rising energy costs have significantly impacted Japan’s trade balance this year. As a country with limited natural resources, Japan imports nearly all of its oil and depends heavily on shipping routes 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 has increased from about $70 per barrel in February to roughly $110 a barrel.
Trade deficit for first half of fiscal year nearly doubles
From April to September, Japan recorded a trade deficit of 2.81 trillion yen, approximately $17.8 billion, nearly twice the amount from the same period last year. During this timeframe, exports grew 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 underscore strong international demand for Japanese technological products alongside rising import costs. Semiconductor-related exports have supported Japan’s trade figures for much of 2026. Japan also posted record trade values in July, with imports surpassing exports. Elevated fuel prices are impacting various sectors, including plastic goods and shipping expenses.
Exchange rate fluctuations and rate hikes influence future prospects
The weakening of the yen has increased import costs, with the US dollar recently trading at around 150 yen. To support the currency, the Bank of Japan has been gradually raising interest rates, including a hike to 1.25% from 1.0% last month, marking the highest level in 31 years. The central bank’s policy board is scheduled to meet again next week.
The Bank aims for inflation of approximately 2%. Experts suggest that oil prices are unlikely to decrease soon, which could continue to put pressure on Japan’s import expenses in the upcoming months. Ongoing monthly trade data will reveal whether export growth can sustain itself against rising energy costs. The Ministry of Finance releases preliminary trade figures each month.