July 2026 trade data shows imports surging 27.8% year-on-year, exceeding forecasts and expanding the deficit to 634.5bn JPY.
Japan’s trade deficit expanded to 634.5bn JPY in July 2026, missing expectations of a 680bn JPY shortfall but widening from June’s 409.9bn JPY gap. Imports climbed 27.8% year-on-year, surpassing the 26.5% forecast and prior 25.4% growth, while exports rose 23.2%, outpacing the 19.9% estimate and 19.3% prior print.
Exports to Asia led gains at 24.5%, with shipments to China up 25.8% and the U.S. rising 22%. The EU saw a 19.1% increase. The stronger-than-expected trade flows reflect resilient demand but highlight persistent import pressures, particularly in energy and raw materials.
The data underscores Japan’s exposure to global commodity price volatility, even as export growth signals steady external demand.