US trade deficit widens to $88.6bn in July

3rd Sep 2026 14:56

(Sharecast News) - The US trade deficit widened in July as exports fell and imports rose, according to the Bureau of Economic Analysis, with the goods and services gap increasing to $88.6bn after a sharp rise in the goods deficit and a small uptick in the services surplus.

Exports dropped to $310.7bn, down $6.6bn from June, driven by lower shipments of industrial supplies, crude oil, non‑monetary gold and computers, partly offset by higher capital goods, consumer goods and pharmaceuticals.

Imports, on the other hand, climbed to $399.3bn, up $10.8bn, led by strong gains in capital goods, computers, accessories and semiconductors, while industrial supplies and crude oil declined.

Year‑to‑date, the overall deficit narrowed 29.6% to $188.4bn as exports rose 12% and imports increased 1.9%. The three‑month average deficit widened to $78.5bn, with average exports lower and average imports higher, and the year‑over‑year deficit also increasing.

Real goods data showed the inflation‑adjusted deficit rising 12.7% to $106.4bn, with real exports down 1.8% and real imports up 3.8%.

The BEA also issued revisions to January-June data, lifting June goods and services exports and imports modestly.

Reporting by Iain Gilbert at Sharecast.com