Japan recorded a trade deficit of JPY 406.9 billion in June 2026, swinging from a surplus of JPY 122.3 billion in the same month a year earlier and far exceeding market expectations for a JPY 120 billion shortfall. This was the second consecutive month in deficit, as import growth continued to outpace exports.
Imports jumped 25.4% year-on-year to an all-time high of JPY 11,335.9 billion, accelerating from a 12.5% increase in May and surpassing consensus forecasts of 21%. It was the fifth straight month of import growth and the sharpest annual rise since November 2022. The surge was underpinned by robust domestic demand, bolstered by the government’s stimulus package introduced in late 2025.
Exports also remained strong, rising 19.3% from a year earlier to a three-month high of JPY 10,929.0 billion, beating expectations for an 18.6% increase and marking the fastest growth since November 2022. June was the tenth consecutive month of export expansion, supported by solid global demand for semiconductors, even as supply chains continued to face disruptions linked to tensions in the Middle East.
