The US trade balance deficit in July reached $88.6 billion — the highest level since March 2025. According to data published on Thursday by the US Department of Commerce, the widening deficit was driven in part by a sharp rise in imports of technological equipment amid an investment boom in artificial intelligence.
In July, the goods‑and‑services trade deficit was $88.6 billion compared with $71.2 billion a month earlier, after a downward revision. The deficit therefore increased by 24 %. Analysts, based on the MarketWatch consensus forecast, had expected a shortfall of around $90 billion.
The last time a deficit of this magnitude was recorded was in March 2025, when it peaked at a historic $140.5 billion. That surge was linked to a wave of imports ahead of the tariffs introduced by Donald Trump.
The total value of imports rose by 2.8 % — to nearly $400 billion — while export values fell by 2.1 % — to $310 billion.
Oil exports worsened the trade balance
When services are excluded and only goods trade is considered, the picture looks even worse – a metric that is especially unfavorable for the US and a focus of Donald Trump. In this category, the July deficit jumped 12.7 % to $106.4 billion.
Goods exports fell, partly because of reduced international demand for gold and oil. The decline in oil exports was largely explained by falling global prices in July amid a pause in hostilities in the Middle East.
At the same time, imports continued to rise. According to Bloomberg, imports of capital goods surged 11 % in the month – the biggest increase since 1993. The growth was driven by a record $6.6 billion rise in computer‑accessory imports and a $1.2 billion increase in semiconductor imports, according to US Department of Commerce data.
Deficit with Mexico and Trump’s trade policy
US Department of Commerce data also show a notable worsening of the trade deficit with Mexico. In July it reached $27.5 billion due to a sharp increase in imports. The trade deficit with China and the European Union remained relatively stable.
After the Supreme Court struck down part of the tariffs introduced last year, Donald Trump has renewed his trade offensive in recent weeks, including imposing additional duties on imports from Canada.
Starting this Thursday, foreign‑made drones will also face tariffs of up to 100 %, although French company Parrot managed to avoid the new US tariff restrictions.
Source: BFMTV
