The U.S. trade deficit widened to $88.6 billion in July, the largest gap since early 2025, according to data released by the Commerce Department on September 3, 2026. The deficit expanded 24.4% from June, reflecting a 2.8% increase in imports and a 2.1% decline in exports. Notably, capital goods imports surged 11.4%, the largest annual rise since 1993, driven by demand for semiconductors, computers, and telecommunications equipment—excluding automobiles. This surge aligns with heightened investment in artificial intelligence infrastructure globally.
U.S. trade deficit hits $88.6 bn in July, widest since early 2025
Imports surged while exports fell, with capital goods imports rising 11.4%—the largest increase since 1993—driven by AI infrastructure demand.
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Elena Kovač · Central Banks Desk · 20 Sept 2026 · 06:33 · 1 min read
This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Elena Kovač
Central Banks Desk
Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.
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