Investing.com -- The US trade deficit expanded in July to $88.6 billion, marking the widest gap since early 2025, according to Commerce Department data released Thursday.
The deficit in goods and services trade grew 24.4% from June. Import values rose 2.8% while exports declined 2.1%.
Capital goods imports jumped 11.4%, representing the largest increase since 1993. This category encompasses computers and accessories, semiconductors, and telecommunications equipment, but excludes automobiles.
The surge in technology imports reflects ongoing investment in artificial intelligence infrastructure. The trade deficit has varied in recent months as the Iran war increased global demand for US petroleum products while American companies worked to address supply-chain disruptions.
The US imposed 50% duties on billions of dollars of Canadian goods, prompting Canadian retaliation after trade negotiations failed last month. The Trump administration continues to use various authorities to impose duties following the Supreme Court's decision to strike down many tariffs earlier this year.
US trade deficit widens to $88.6 billion in July
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