Japan’s Trade Deficit Nearly Quadruples to 1.11 Trillion Yen as Imports Jump 28 Percent
Japan ran a trade deficit of 1,105.6 billion yen in August, up from 294.1 billion yen a year earlier, the Ministry of Finance said on 16 September. Exports rose 19.3 percent to 10,048.4 billion yen and imports rose 28.0 percent to 11,154.0 billion yen. On our calculation the deficit is 3.8 times last August’s. The figures are provisional and not seasonally adjusted.
Energy and chips drive the import bill
Mineral fuels rose 38.4 percent and contributed 7.8 points of the 28.0 percent rise in imports, on the ministry’s contribution figures. On our calculation that is more than a quarter of the increase. Crude oil imports rose 58.7 percent in value on only 3.6 percent more volume. On our calculation that puts the price paid per kilolitre about 53 percent higher than a year ago. Liquefied natural gas rose 29.7 percent in value even though volumes fell 6.8 percent.
Electrical machinery added another 6.3 points. Semiconductor imports rose 82.1 percent and integrated circuits 93.2 percent, while computer imports rose 54.2 percent in value.
| Import item | Value change | Volume change |
|---|---|---|
| Crude oil | 58.7% | 3.6% |
| LNG | 29.7% | -6.8% |
| Coal | 22.8% | -8.2% |
| Integrated circuits | 93.2% | 7.0% |
Change from August 2025, not seasonally adjusted.
Exports grow, but cover less of the bill
Exports also rose strongly, led by electrical machinery, which contributed 5.7 points. Semiconductors rose 52.3 percent and contributed 3.6 points of the 19.3 percent export growth, and chipmaking equipment rose 40.1 percent. Car exports rose 15.8 percent in value on 5.1 percent more units. On our calculation exports covered 90.1 percent of imports in August, down from 96.6 percent a year earlier.
| Measure | Aug 2026 | Aug 2025 | Change |
|---|---|---|---|
| Exports, billion yen | 10,048.4 | 8,420.1 | 19.3% |
| Imports, billion yen | 11,154.0 | 8,714.2 | 28.0% |
| Balance, billion yen | -1,105.6 | -294.1 | -811.5 |
Provisional, not seasonally adjusted. Billions converted from the ministry’s million yen figures. The balance change is our calculation.
Partners: the US surplus shrinks
Exports to the United States rose 24.9 percent, but imports from it rose 55.2 percent. Japan’s surplus with the US fell 77.6 percent to 70.4 billion yen. The deficit with China widened to 551.6 billion yen. Imports from the Middle East fell 4.2 percent to 868.2 billion yen. Within that, purchases from Saudi Arabia rose 21.0 percent to 445.0 billion yen, while those from the UAE slipped 3.1 percent.
| Partner | Exports | Imports |
|---|---|---|
| United States | 24.9% | 55.2% |
| China | 20.6% | 22.5% |
| European Union | 11.0% | 20.4% |
| Middle East | -5.2% | -4.2% |
Change from August 2025 in value.
Why it matters: Japan’s trade balance turns on what it pays for energy and components. In August both bills rose faster than exports, even with car and chip shipments strong, and on our calculation exports covered 6.5 points less of the import bill than a year earlier.
Outlook: On our reading, with crude volumes up only 3.6 percent and LNG volumes down 6.8 percent, the rise in crude and LNG import values is being driven mainly by prices rather than quantities.
Sources: Ministry of Finance Japan.
