Japan Imports Notch Record High

Japan’s imports surged 27.8% year-on-year to a fresh record of JPY 12,146.3 billion in July 2026, accelerating from a 25.4% increase in June, exceeding market expectations of 26.5% and marking the strongest growth since November 2022. The increase was supported by resilient domestic demand, boosted by the government’s late-2025 stimulus measures, as well as higher crude oil prices. Imports rose from China (26.2%), Hong Kong (10.6%), Taiwan (65.9%), South Korea (28.8%), the U.S. (58.0%), ASEAN (30.9%) and the Middle East (11.9%), while purchases from the EU declined (-2.3%). By category, imports increased across all major components, led by electrical machinery (41.3%) amid strong semiconductor demand, followed by manufactured goods (31.2%), machinery (22.4%), chemicals (19.7%), transport equipment (13.5%) and other goods (5.1%). Meanwhile, crude oil imports soared 87.8% as Japan sought alternative supply routes to bypass the Strait of Hormuz amid ongoing Middle East tensions.

Japan's imports surged 25.4% year-on-year to a record JPY 11,335.9 billion in June 2026, significantly accelerating from May's 12.5% increase. The latest result exceeded market forecasts of a 21.0% rise, marking the fifth consecutive month of growth in purchases and the strongest expansion since November 2022. The sharp increase reflected resilient domestic demand, boosted by the government's late-2025 stimulus measures. Imports rose from China (29.4%), Hong Kong (20.9%), Taiwan (49.1%), South Korea (32.2%), the U.S. (52.7%), ASEAN countries (25.5%), and the EU (1.6%), while purchases from the Middle East declined 3.9%. By category, imports increased for electrical machinery (32.1%), driven by semiconductor demand, machinery (19.7%), manufactured goods (34.3%), chemicals (25.4%), transport equipment (12.5%), and other goods (20.3%). Meanwhile, crude oil imports soared 59.3% as Japan diversified energy procurement away from the Strait of Hormuz amid ongoing regional tensions.

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.