Japan’s trade deficit widened in June as a weaker yen and rising oil prices pushed up its import bill, even as exports benefited from strong global demand for artificial intelligence chips.The deficit expanded to ¥406.9 billion ($2.5 billion) from a revised ¥391.8 billion in May, Bloomberg reported, citing Finance Ministry data released Wednesday. Economists had expected the gap to narrow to ¥120 billion.
Imports surged 25.4% from a year earlier, outpacing a 19.3% increase in exports. Oil import volumes declined, but their value jumped nearly 60%, reflecting the sharp rise in prices amid renewed fighting involving the US and Iran.
Japan, which traditionally depends heavily on West Asia for its energy supplies, imported less oil from the region while increasing purchases from the US. The value of US oil imports soared roughly 900%, while volumes climbed 460%, according to Bloomberg.
The yen averaged 159.69 to the dollar in June, 10.9% weaker than a year earlier. It has since fallen further, touching 163.24 on Tuesday, its lowest level since late 1986.The currency’s slide has renewed speculation that Japanese authorities could intervene in the foreign exchange market. Japan carried out record intervention in April and May after the yen weakened beyond 160 to the dollar.“We think [Japan] may soon intervene again,” HSBC analysts led by global head of foreign exchange research Paul Mackel said in an outlook report cited by Reuters.The widening trade deficit is also likely to weigh on Japan’s second-quarter growth, with economists expecting the West Asia war and higher energy costs to slow the economy further.The government is due to release its initial GDP estimate next month.Also Read: Chip stocks lead Wall Street Rebound on Tuesday, disregard surge in crude pricesFirst Published: Jul 22, 2026 6:48 AM IST
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