June imports reached ¥11.3 trillion while the Japanese currency fell to its weakest level in four decades
TOKYO, July 22, 2026 — Japan’s trade balance deteriorated in June as rising energy costs and a sharply weaker yen pushed the value of imports to a record level.
Finance Ministry data showed imports increasing 25.4% from a year earlier to approximately ¥11.3 trillion, or about $69 billion. Exports rose 19.3% to roughly ¥10.9 trillion.
The faster increase in imports produced a trade deficit of ¥406.9 billion, equivalent to approximately $2.5 billion. A year earlier, Japan had recorded a surplus of about ¥122 billion during the same month.
Higher petroleum costs contributed significantly to the increase. Disruption involving shipping around the Strait of Hormuz, combined with the U.S.–Iran conflict, has placed upward pressure on international energy prices. Japan imports much of its oil and natural gas, leaving its economy particularly exposed to supply interruptions.
The yen also weakened beyond 163 to the U.S. dollar, its lowest level since 1986. A falling yen makes Japanese exports more competitive abroad but increases the domestic cost of imported fuel, food and industrial materials.
Japan’s finance minister said authorities were prepared to take decisive action against excessive currency movements, raising expectations that Tokyo could intervene in foreign-exchange markets.
During the first half of 2026, Japanese exports rose approximately 14% to ¥60.6 trillion, while imports increased nearly 11% to ¥61.9 trillion. The country consequently recorded a trade deficit of more than ¥1 trillion for the six-month period.
The latest figures increase pressure on the Bank of Japan, which must balance inflation risks against concerns that higher interest rates could weaken economic activity and raise borrowing costs for the heavily indebted government.
