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 growth in imports compared to exports. During this period, exports increased by 16.7% from the previous year, reaching 10.9723 trillion yen, while imports climbed 18.9% to 11.5088 trillion yen. This resulted in a deficit approximately equal to $3.4 billion, as reported by Xinhua News Agency.
Supporting the export trend for the 13th month in a row, robust demand for semiconductors and equipment used in chip manufacturing contributed significantly. Xinhua also highlighted increased interest in products associated with artificial intelligence. The trade deficit in September marked Japan’s fifth consecutive month of negative trade balance, although the shortfall was smaller than August’s 1.11 trillion yen. The pace of import growth slowed from August’s 28.0%, partly due to a decline in crude oil shipments.
Rising energy prices have had a considerable impact on Japan’s trade balance throughout this year. As a resource-scarce country, Japan relies heavily on oil imports, primarily through shipping routes passing the Strait of Hormuz. Recent disruptions in the Middle East have compelled importers to pay higher prices to secure supplies via alternative routes. Brent crude oil has increased from roughly $70 per barrel in February to about $110 a barrel.
First-half deficit nearly doubles
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, approximately $17.8 billion, nearly twice the amount recorded a year earlier. During this period, exports increased by 18.4% to 63.5 trillion yen, while imports rose by 20.4% to 66.3 trillion yen, both reaching historic highs for Japan.
The data reflect strong international demand for Japanese technological products along with rising import costs. For much of 2026, semiconductor-related exports have played a key role in supporting overall trade. Japan also posted record trade values in July, with imports surpassing exports. Elevated fuel prices continue to influence a broad array of sectors, including plastics and shipping.
Weak yen and rate hikes influence future prospects
The yen’s recent weakening has increased import costs, with the US dollar trading around 150 yen in recent weeks. To support the currency, the Bank of Japan has been gradually raising interest rates, reaching 1.25% last month from 1.0%, the highest in 31 years. The central bank’s policy board is scheduled to meet again next week.
Aiming for an inflation rate of about 2%, analysts believe that oil prices are unlikely to decrease soon, which could sustain upward pressure on Japan’s import expenses. Upcoming monthly trade figures will determine whether export growth can continue to counteract higher energy costs. The Ministry of Finance releases preliminary trade data each month.