Exports hit a record high, but Japan’s trade deficit doubles

【Financial News Tokyo correspondent Seo Hye-jin】Japan’s exports and imports both hit record highs in the first half of fiscal 2026. However, imports grew faster amid higher crude procurement costs and increased semiconductor imports, widening the trade deficit to about twice its level a year earlier.
According to Japan’s Ministry of Finance on the 21st, imports from April to September this year totaled 66.2753 trillion yen, up 20.4% from the same period a year earlier. This was the largest half-year total since comparable statistics began in 1979.
Crude oil imports rose 26.3% to 5.7439 trillion yen. Import costs increased as crude oil prices rose and, amid the impact of the situation in the Middle East, Japan turned more to alternative sources that bypass the Strait of Hormuz. Increased semiconductor imports also pushed up the overall import bill.
Exports over the same period rose 18.4% to 63.4569 trillion yen, setting a record. Exports of semiconductors and electronic parts to China and automobiles to the United States led the growth.
However, as import growth outpaced export growth, the trade balance posted a deficit of 2.8184 trillion yen. The deficit was about twice that of the same period a year earlier, marking an 11th consecutive half-year period in deficit.
The trade balance also posted a deficit of 536.5 billion yen in September, marking five consecutive months in the red. Exports rose 16.7% year on year to 10.9723 trillion yen, while imports increased 18.9% to 11.5088 trillion yen.
Increased imports of U.S. crude oil from alternative suppliers and Korean semiconductors and other electronic parts were cited as key factors behind September’s trade deficit.
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