Japan’s trade deficit widens in June as yen weakens and Iran war lifts import costs

Japan’s trade deficit widens in June, according to data reported by multiple outlets. On an unadjusted basis, the deficit expands to ¥406.9 billion from a revised ¥391.8 billion gap in May. The reported deterioration is linked to higher import costs. A weaker yen increases the yen value of goods Japan imports, contributing to the widening deficit. In addition, the war involving Iran is cited as a factor driving up the price of oil, which further raises the cost of energy imports. Together, the currency effect and increased energy costs weigh on Japan’s trade balance. The figures are presented on an unadjusted basis, and both sources describe the change from the revised May result. Overall, the reports attribute the monthly increase in the deficit primarily to inflationary pressures on imports driven by exchange-rate depreciation and higher oil prices connected to developments in the Iran conflict.