The US merchandise-trade deficit widened in July to the largest since early last year on a multi-decade surge in inbound shipments of capital equipment. The shortfall in goods trade grew 17.2% from the prior month to $118.8 billion, the largest since March 2025, Commerce Department data showed Thursday.The median estimate in a survey of economists called for a $100.5 billion deficit. The figures aren't adjusted for inflation. Merchandise imports climbed 3.7%. The advance was fuelled by the largest increase in capital goods since 1993. Goods exports fell 2.9%.The trade deficit has fluctuated in recent months as the Iran war helped boost global demand for US petroleum products and American firms stockpiled goods and materials to mitigate supply-chain disruptions.
US goods trade deficit widens 17% to $118.8 billion in July
The United States merchandise-trade deficit grew substantially in July. This shortfall reached its highest point since early last year. Inbound shipments of capital equipment saw a multi-decade surge, fueling the deficit. Goods imports climbed, while exports experienced a notable decline. The trade balance has fluctuated recently due to global demand and supply chain concerns.
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