Japan's April Trade Soars on Tech Demand, Achieving Surplus Despite Mideast Oil Disruptions

TOKYO – Japan's exports experienced a significant surge in April, climbing 14.8% from the previous year, according to Finance Ministry data released on Thursday, May 20, 2026. This robust trade performance led to a notable surplus, even as concerns persist over global oil and gas supplies exacerbated by the conflict in Iran.

The stronger-than-anticipated export growth marks the eighth consecutive month of expansion for Japan. A primary driver was the booming global demand for computer chips and infrastructure vital for artificial intelligence, with semiconductor shipments by value surging nearly 42% year-over-year. Additional contributions to the strong export figures came from increased shipments of medical products, paper goods, and electrical machinery.

Overall imports also saw an uptick, rising 9.7% from a year earlier. This favorable balance of trade resulted in a surplus of 301.9 billion yen (approximately $1.9 billion) for April, a significant reversal from a deficit recorded in the same month last year. This follows a surplus of nearly 643 billion yen reported in March.

Geographically, Japan's trade with key partners showed strong growth. Exports to China increased by 15.5%, while those to the United States rose by 9.5%. On the import side, goods from China climbed 15%, and imports from the U.S. jumped 23%.

Despite the overall rise in imports, Japan's energy sector saw a notable contraction in value. Oil imports plummeted by nearly 50% from the previous year, and imports of liquefied natural gas (LNG) dropped by 20%. These declines are largely attributed to the effective closure of the Strait of Hormuz, a critical maritime route for exports from the Persian Gulf, due to the ongoing war in Iran.

As a nation heavily reliant on imported oil, Japan faces significant challenges. Prime Minister Sanae Takaichi has taken measures to mitigate supply shortages, including ordering the release of national oil reserves. However, these shortfalls have driven global prices higher, with Brent crude, which traded at $70 a barrel before the conflict, now exceeding $100. A weakening yen further compounds the issue, making dollar-denominated oil imports even more expensive for Japan and impacting the production of oil-related products like naphtha.

Reporting by Yuri Kageyama, AP Business Writer, on May 20, 2026.