Japan Imports Notch Record High

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.

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.