Japan's trade balance posted a deficit of JPY 406.9 billion in June 2026, reversing from a JPY 122.3 billion surplus a year earlier and far exceeding market expectations for a JPY 120 billion shortfall.
It marked the second consecutive monthly deficit, with imports outpacing exports.
Imports surged 25.4% year-on-year to a record peak of JPY 11,335.9 billion, accelerating from May's 12.5% rise, beating forecasts of 21%, and marking the fifth straight month of growth and the strongest increase since November 2022.
The sharp rise reflected robust domestic demand, supported by the government's late-2025 stimulus measures.
Meanwhile, exports climbed 19.3% to a three-month high of JPY 10,929.0 billion, the strongest gain since November 2022, exceeding expectations of 18.6%.
It was the tenth consecutive month of export growth, driven by resilient global demand for semiconductors despite ongoing Middle East-related supply chain disruptions.