Higher oil prices weigh on July trade gap of 634.5 billion yen

2026-08-20

Exports hit record high

According to preliminary July trade statistics released by the Finance Ministry on the 20th, the trade balance, exports minus imports, showed a deficit of 634.5 billion yen. The deficit was the third straight monthly shortfall. Exports of semiconductor electronic parts remained firm, but higher import costs for crude oil and other goods weighed on the balance.

Exports rise for 11th straight month

Exports rose 23.2% from a year earlier to 11.5117 trillion yen, increasing for the 11th consecutive month. The figure marked a record high. Strong vehicle shipments to the U.S. and semiconductor electronic parts to China boosted the overall total.

Crude oil imports swell

Imports climbed 27.8% to 12.1462 trillion yen, rising for the sixth straight month and hitting a record for the second month in a row. Crude oil imports jumped 87.8% to 1.4089 trillion yen, while semiconductor electronic parts from Asia and nonferrous metals such as silver from South Korea also increased. In response to turmoil in the Middle East, procurement through alternative routes that do not pass through the Strait of Hormuz has expanded, pushing up import costs. The yen-denominated import unit price at customs rose 78.0% to 116,382 yen per kiloliter, while import volume increased 5.5% to 12.1 million kiloliters.

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