Japan’s Ministry of Finance released preliminary data on June 19 showing a trade deficit of ¥378.6 billion (US$2.4 billion) for May 2026, ending four consecutive months of surplus since the start of the year.
The primary causes were surging energy prices and a sharp 57%+ drop in crude oil import volumes amid escalating conflict in the Middle East disrupting supply chains. Total imports in May rose 8.7% year-on-year to ¥9.7 trillion, while exports increased only 2.6% to ¥9.3214 trillion.
On the export side, key items such as automobiles, manufacturing machinery, and electronic components all posted positive growth, particularly to the U.S. and Asian markets. However, export value to China continued to decline slightly due to weak demand from the world’s second-largest economy.
Analysts predict the trade deficit may persist in coming months if energy prices remain elevated and Middle East tensions show no signs of cooling. Japan’s Finance Minister stated the government will closely monitor market developments and stands ready to take necessary intervention measures to stabilize the macroeconomy.
