TOKYO: Japan’s exports continued to expand in September 2026, supported by strong global demand for semiconductors, artificial intelligence (AI)-related products and automobiles. Official data released by Japan’s Finance Ministry showed that export value increased 16.7% compared with the same month last year, marking the country’s 13th consecutive month of export growth.

The performance highlights the continued importance of Japan’s advanced manufacturing sector amid rising global demand for AI infrastructure and semiconductor technology. However, export growth was slower than economists had anticipated, suggesting that external demand remains strong but faces uncertainties.

According to the latest trade figures, Japan’s exports reached approximately 10.97 trillion yen in September. The increase followed a 19.3% rise in August and fell short of the market forecast of around 20.1%.

Semiconductor Demand Supports Export Growth

Semiconductors and related manufacturing equipment were among the strongest contributors to Japan’s export performance. The global expansion of AI infrastructure has increased demand for chips, electronic components and the specialised equipment required to manufacture them.

Shipments of semiconductor-related products rose 49.4% year-on-year, while exports of chip-making equipment increased 43.9%. These gains reflect continued investment in semiconductor production and the growing need for computing capacity to support AI applications.

Japan plays an important role in global semiconductor supply chains, particularly through its production of specialised materials, manufacturing equipment and precision components. Demand from chipmakers seeking to expand or upgrade their facilities has therefore supported Japanese exporters.

The latest figures also underline how technology-related investment is influencing international trade. As companies and governments invest in AI systems and semiconductor capabilities, suppliers of essential equipment and components are benefiting from higher overseas demand.

Automobile Exports Add to the Gains

Automobiles also contributed significantly to Japan’s export growth. Car exports increased 15.1% from a year earlier, supported by demand in overseas markets.

The automotive industry remains a major pillar of Japan’s manufacturing economy, with domestic manufacturers supplying vehicles to customers across North America, Europe and Asia. The September figures indicate that vehicle shipments continued to provide support alongside the stronger performance of technology-related exports.

Automobile exports are particularly important because they connect Japan’s manufacturing sector with a wide network of suppliers, component makers and logistics businesses. Continued demand for vehicles can therefore benefit several parts of the economy.

However, the industry’s outlook remains exposed to international trade policies, production costs, currency movements and changes in consumer demand. These factors could influence export performance in the months ahead.

Exports to the United States and China Increase

Japan recorded export growth across several major markets in September. Shipments to the United States rose 22.9% year-on-year, while exports to China increased 8.6%. Exports to the European Union also grew by 10.5%.

The increase in shipments to the United States is notable amid trade tensions and tariff measures affecting international commerce. Washington has sought to reduce its trade deficit with Japan, while the two countries reached a trade agreement in 2025 that capped tariffs at 15% on most Japanese products in exchange for Tokyo’s investment commitments in the United States.

Growth in exports to China and Europe also points to the importance of maintaining demand across multiple markets. A broad export base can help Japanese manufacturers manage changes in individual economies, although global trade remains vulnerable to geopolitical developments and shifts in business investment.

Imports Rise and Trade Deficit Narrows

Japan’s imports increased 18.9% year-on-year in September, reflecting higher import values across several categories. Despite the increase, the country’s trade deficit narrowed to approximately 536.6 billion yen, compared with about 1.1 trillion yen in August.

Crude oil imports rose 51.1% in value terms. Higher energy costs and changes in shipment volumes contributed to the import bill, highlighting Japan’s exposure to international energy prices.

Japan depends heavily on imported energy, making its trade balance sensitive to crude oil prices, shipping conditions and exchange-rate movements. Disruptions to shipping routes or prolonged geopolitical tensions can raise costs for businesses and put pressure on the wider economy.

The weaker yen can also have mixed effects. It makes Japanese goods more affordable for overseas buyers, potentially supporting exporters, but increases the domestic cost of imported fuel, raw materials and other products.

Outlook for Japan’s Export Sector

The September figures show that exports remain an important source of support for Japan’s economy, particularly as demand for AI-related products and advanced manufacturing equipment continues to expand.

Nevertheless, the slower-than-expected growth rate highlights the risks facing the trade outlook. A slowdown in global demand, weaker investment in AI infrastructure, rising energy prices or further trade restrictions could affect shipments.

Japan’s ability to sustain export momentum will depend on demand from its major trading partners and the competitiveness of its manufacturers. Developments in semiconductor investment, automobile sales, energy markets and international trade policy will remain important indicators.

For now, strong semiconductor and automobile shipments are helping Japan maintain a prolonged period of export growth. Whether this momentum continues will depend on how global demand and geopolitical conditions evolve in the coming months.