US Trade Deficit Widens to **$88.6 Billion** in July, Surpassing Forecasts

• US trade deficit hit $88.6 billion in July.
• Largest deficit since March 2025, exceeding forecasts.
• Driven by surge in tech imports, decline in exports.

The U.S. trade deficit expanded significantly in July, reaching $88.6 billion, according to a report from the Commerce Department. This figure marks an increase from the revised $71.2 billion recorded in June and represents the largest deficit since March 2025. The widening was primarily driven by a substantial rise in imports, which climbed by $10.8 billion to $399.3 billion, particularly in computers, semiconductors, and other technology equipment, often linked to AI-related demand. Concurrently, exports experienced a decline of $6.6 billion to $310.7 billion. The reported deficit exceeded economist expectations of $83.0 billion and could potentially impact third-quarter economic growth.