Key facts
- The U.S. trade deficit expanded to $88.6 billion in July.
- This represents the largest trade gap since March 2025.
- Imports increased by 2.8% to $399.3 billion, driven by tech products.
- Exports decreased by 2.1% to $310.7 billion.
- The rise in imports is attributed to the booming AI tech build-out and data center spending.
The U.S. trade deficit widened substantially in July, reaching its largest point in over a year at $88.6 billion. This increase was primarily fueled by a surge in imports of technology products, including computers, accessories, and semiconductors, linked to the ongoing build-out of AI infrastructure and data centers.
Government data revealed that imports climbed 2.8% to $399.3 billion for the month. Concurrently, exports fell 2.1% to $310.7 billion, with notable declines in industrial supplies such as crude oil and gold. The trade gap represented a 24.4% increase from the preceding month.
Fluctuations in U.S. trade have been observed since last year, partly influenced by tariffs imposed by President Donald Trump. Businesses have been importing goods in anticipation of new duties and seeking refunds following a Supreme Court decision on global tariffs. Additionally, disruptions in the Middle East, including Iran's actions in the Strait of Hormuz, have impacted global energy transit and trade flows.