U.S. trade deficit hits $88.6 bn in July, widest since early 2025

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.