Japan Trade Deficit Widens in June as Oil Imports Rise and Weak Yen Impacts Trade

Japan recorded a trade deficit in June, according to data released by the Ministry of Finance. The country posted a trade deficit of ¥406.9 billion, reversing a surplus of ¥122 billion recorded in the same month a year earlier.

Higher oil import costs and a weaker yen contributed to the decline in the trade balance. The June reading marked the second consecutive month in which Japan reported a trade deficit.

Japan Trade Deficit June 2026 Driven by Higher Import Costs

Japan's trade deficit reached ¥406.9 billion in June as imports grew faster than exports. Total imports increased 25% year-on-year to ¥11.3 trillion, while exports rose 19% to ¥10.9 trillion.

The higher value of imported goods, particularly energy products, played a significant role in widening the trade gap. The latest figures highlight the impact of global commodity prices on the country's trade position.

Japan Oil Imports Surge Amid Global Energy Market Changes

According to provisional government data, Japan's oil imports from the United States surged nearly 5-fold compared with a year earlier. Japan relies heavily on imported oil, making it sensitive to fluctuations in global energy markets.

Disruptions affecting vessel traffic through the Strait of Hormuz also influenced energy supply dynamics. Brent crude oil prices rose from around $60 per barrel at the beginning of the year to as high as $114 per barrel before easing to approximately $90 per barrel, increasing import costs for the country.

Weak Japanese Yen Boosts Exports and Imports

The depreciation of the yen contributed to higher values for both exports and imports during June. The US dollar traded at around ¥163, compared with approximately ¥140 a year earlier.

Since international trade transactions are commonly priced in dollars, a weaker yen inflates the value of both incoming and outgoing shipments when converted into local currency. While exporters benefited from higher export values, the increased cost of imported goods added pressure to the overall trade balance.

Japan Export Growth Supported by Semiconductor Shipments

Japan's exports continued to show strong growth during the month, supported by demand from key international markets. Export shipments increased to major trading partners, including the United States and China.

Semiconductor-related exports were among the contributors to the overall rise in outbound shipments. For the January-June 2026 period, exports grew nearly 14% to ¥60.6 trillion, reflecting continued demand for Japanese products despite external economic challenges.

Read More: FPI Selling Spree Extends in June.

Conclusion

Japan's June trade data showed a return to deficit conditions as import growth outpaced export expansion. Rising energy costs, increased oil imports and the weakness of the yen were significant factors influencing the outcome.

During the first 6 months of 2026, imports rose nearly 11% to ¥61.9 trillion, while exports reached ¥60.6 trillion, resulting in an overall trade deficit of around ¥1 trillion. The figures highlight the importance of global energy prices, currency movements and export demand in shaping Japan's trade performance.

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