TOKYO, Japan / ConSynSer / – Preliminary data from the Ministry of Finance indicates that Japan experienced a trade shortfall of 536.6 billion yen in September, as imports outpaced exports. During this period, exports increased by 16.7% compared to the previous year, totaling 10.9723 trillion yen. Meanwhile, imports grew by 18.9%, reaching 11.5088 trillion yen. The resulting deficit was approximately $3.4 billion, according to Xinhua News Agency.
This marked the 13th consecutive month of export growth, driven largely by robust demand for semiconductors and equipment used in chip manufacturing. Xinhua also highlighted increasing interest in goods associated with artificial intelligence. The data further revealed that Japan’s trade deficit has now persisted for five straight months. Nonetheless, the September shortfall was smaller than the 1.11 trillion yen deficit recorded in August. The pace of import growth slowed from a 28.0% increase in August, partly due to a reduction in crude oil imports.
Rising energy prices have contributed to Japan’s challenging trade balance this year. Since resource scarcity is an issue for Japan, the country relies heavily on oil imports transported through routes passing the Strait of Hormuz. Disruptions in the Middle East have prompted importers to pay more to secure supplies via alternative routes. Brent crude oil has increased from roughly $70 a barrel in February to approximately $110 a barrel.
First-half deficit nearly doubles
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, equivalent to about $17.8 billion, nearly doubling the figure from the same period last year. During this timeframe, exports expanded by 18.4%, reaching 63.5 trillion yen, whereas imports increased by 20.4% to 66.3 trillion yen, both setting new records for Japan.
The data illustrates strong international demand for Japanese technological goods, combined with rising import expenses. Semiconductor-related exports have played a significant role throughout much of 2026. Japan also posted record trade values in July, driven by imports surpassing exports. Elevated fuel prices are affecting numerous sectors, including plastics and shipping.
Weak yen and rate hikes influence future trends
The yen’s depreciation has increased import costs, with the US dollar trading around 150 yen in recent weeks. The Bank of Japan has been gradually raising interest rates, partly to support the yen. Last month, the bank increased its benchmark rate to 1.25% from 1.0%, reaching the highest level in 31 years. Its policy board is scheduled to meet again next week.
The central bank aims for an inflation rate of about 2%. According to analysts, oil prices are unlikely to fall soon, which could continue to put upward pressure on Japan’s import costs in the upcoming months. Future trade figures will reveal whether export growth can keep pace with rising energy expenses. The Ministry of Finance releases initial trade data each month.