August M
Japan’s exports climbed sharply in April, driven by soaring global demand for semiconductors and AI-related technology, even as the country faced growing pressure from disrupted oil and gas supplies linked to the war in Iran.
New government figures showed Japanese trade remained resilient despite energy concerns and rising import costs, reports ABC News.
Chip demand surges
Finance Ministry data released Thursday showed Japanese exports rose 14.8% in April compared with the same month last year.
It marked the eighth consecutive month of export growth.
Shipments of semiconductors led the increase, jumping nearly 42% in value as global technology firms continued expanding artificial intelligence infrastructure and computer chip production.
Exports of medical products, paper goods and electrical machinery also recorded strong gains.
Trade surplus returns
Japan posted a trade surplus of 301.9 billion yen, or roughly $1.9 billion, reversing a deficit recorded during the same period a year earlier.
Imports increased 9.7% year-on-year.
Trade with both China and the United States also strengthened. Exports to China rose 15.5%, while exports to the US increased 9.5%.
Meanwhile, imports from China climbed 15%, and imports from the US surged 23%, according to the ministry figures.
Energy supplies squeezed
Despite overall import growth, Japan’s purchases of oil and liquefied natural gas dropped sharply as the conflict involving Iran disrupted shipping routes through the Strait of Hormuz.
Oil imports fell nearly 50% in value compared with a year earlier, while LNG imports declined 20%.
Japan relies heavily on imported energy, and the disruption has raised concerns about supply shortages and rising fuel prices.
Prime Minister Sanae Takaichi’s government has already ordered the release of part of Japan’s strategic oil reserves to help stabilize supplies.
Rising costs
The conflict has pushed global oil prices sharply higher.
Brent crude, which traded near $70 per barrel before the escalation involving Iran, has now climbed above $100.
A weaker Japanese yen has further increased the cost of importing dollar-priced fuel and energy products.
Higher oil prices are also affecting industries dependent on petroleum-based materials, including chemicals and manufacturing sectors using products such as naphtha.
Sources: ABC News, Japan Finance Ministry
