Japan returns to trade deficit as AI boosts imports
Business
Japan slipped back into a trade deficit in May 2026, with imports outpacing exports by 378.6 billion yen ($2.4 billion).
Exports were up 17% from last year, while imports rose 12.5%, driven by a spike in computer chips and electrical equipment as AI tech takes off.
Japan electrical machinery imports jump 31.5%
Imports of electrical machinery jumped 31.5%, while oil and gas imports fell 1.8% year-on-year due to the Iran war and blockade of the Strait of Hormuz.
The weak yen (now around 160 per US dollar versus 140 last year) made buying stuff from abroad pricier for Japan.
Even though the Bank of Japan raised interest rates for the first time since 1995 to fight inflation, it hasn't helped strengthen the yen just yet.