Japan Import Growth at 14-Month Peak

Japan’s imports rose 12.5% yoy to JPY 9,890.2 billion in May 2026, accelerating from April’s 9.8% gain but falling short of market expectations of 12.8%. It was the fourth straight month of growth and the strongest pace since January 2025, boosted by strong domestic demand following the government’s late-2025 stimulus measures. Imports grew from China (13.7%), the U.S. (26.0%), Taiwan (43.2%), South Korea (26.0%), ASEAN (28.3%), and the EU (4.7%), while purchases fell from Hong Kong (-3.0%) and the Middle East (-42.7%). Imports rose for electrical machinery (31.5%), led by chips, machinery (20.4%), manufactured goods (13.6%), chemicals (14.9%), transport equipment (9.9%), and other goods (6.5%). In contrast, crude oil imports plunged 28.5% as the closure of the Strait of Hormuz amid Middle East conflict disrupted shipments. Looking ahead, a weaker yen could fuel imported inflation, eroding household purchasing power and raising costs for businesses reliant on imported inputs.

Japan's imports rose 9.7% yoy to JPY 10,205.4 billion in April 2026, easing from a 10.9% gain in March and marking the softest pace in three months. Still, it was the third straight month of import growth, surpassing market expectations of 8.3%, as domestic demand stayed resilient, partly lifted by the government’s large stimulus measures introduced in late 2025. Purchases grew from China (14.9%), the U.S. (23.3%), Taiwan (47.0%), South Korea (60.2%), ASEAN (19.5%), the EU (3.8%), and Russia (20.3%). Conversely, imports fell from Hong Kong (-6.7%) and the Middle East (-56.8%). Imports rose for electrical machinery (30.3%), led by semiconductors; others (8.1%); machinery (22.8%); manufactured goods (17.3%); chemicals (17.4%); raw materials (25.3%); and transport equipment (5.6%). However, purchases of mineral fuels fell 19.3%, on disruptions from the Middle East war. Looking ahead, supply chain disruptions could weigh on imports as firms face tighter access to energy and raw materials.

Japan’s imports rose 10.9% yoy to JPY 10,336.3 billion in March 2026, surpassing market estimates of 7.1% and accelerating from February’s 10.3% gain. This was the second straight month of increases in purchases and the fastest pace since January 2025, boosted by robust domestic demand following Tokyo’s sizeable stimulus rollout in late 2025. Imports grew for most components, including electrical machinery (25.9%), led by semiconductors; others (8.2%); machinery (14.5%); manufactured goods (19.0%); chemicals (10.3%); and raw materials (15.6%). On the other hand, purchases of mineral fuels fell 3.4%, reflecting disruptions from the Middle East conflict. Imports of transport equipment declined 2.3%, largely dragged by motor vehicles. Purchases expanded from China (8.8%), the U.S. (17.7%), Hong Kong (12.4%), Taiwan (31.4%), South Korea (29.9%), ASEAN countries (10.6%), the EU (16.7%), and South Africa (64.4%). Conversely, imports fell from Russia (-16.0%) and the Middle East (-10.7%).