Japan posts first trade deficit in four months as chip imports surge

Japan recorded a trade deficit of about ¥378.6 billion (≈ $2.34 billion) in May, its first monthly shortfall in four months. The gap emerged as imports rose 12.5 % year‑on‑year, driven chiefly by a wave of semiconductor and electronic component purchases that outpaced export growth.

Exports increased 17 % YoY, bolstered by strong demand for chips, automobiles and other electronic goods, keeping the overall trade gap 42.8 % narrower than a year earlier. Crude‑oil imports fell more than 57 % in volume after Middle‑East tensions disrupted shipments through the Strait of Hormuz, prompting Japan to diversify fuel supplies and raise U.S. crude purchases.

A Reuters Tankan poll showed Japanese manufacturers’ sentiment improving for a second month, with the chemicals and electronics sectors citing robust chip demand as a key driver. The shift to a deficit highlights the pressure on global chip supply chains and underscores Japan’s dual role as both a major exporter and importer of semiconductor‑related goods.