The United States goods and services trade deficit widened sharply in July, rising $17.4 billion to $88.6 billion, up from a revised $71.2 billion in June, the U.S. Census Bureau and the Bureau of Economic Analysis announced Thursday.
July imports totaled $399.3 billion, an increase of $10.8 billion from the prior month. July exports fell $6.6 billion to $310.7 billion. The combined effect pushed the deficit to its highest single-month level in recent data.
The goods deficit drove most of the increase, rising $17.6 billion to $119.6 billion. The services surplus edged up slightly, gaining $0.2 billion to reach $31.0 billion.
On the import side, capital goods led the climb, rising $14.4 billion. Computers accounted for $6.9 billion of that increase, with computer accessories adding another $6.6 billion. The surge in tech-related imports contributed heavily to the overall goods deficit widening.
Exports fell across several categories. Industrial supplies and materials dropped $8.7 billion, with crude oil down $4.5 billion and nonmonetary gold falling $3.9 billion. Capital goods exports rose $1.9 billion and consumer goods exports gained $1.7 billion, partially offsetting those declines. Pharmaceutical preparations exports rose $1.0 billion.
Services exports also slipped, falling $0.4 billion to $109.7 billion. Travel exports declined $0.6 billion and financial services fell $0.3 billion. Charges for intellectual property use rose $0.4 billion, and other business services gained $0.2 billion.
Despite the July spike, the year-to-date picture looks different from last year. Through July 2026, the cumulative goods and services deficit is down $188.4 billion, or 29.6 percent, compared to the same period in 2025. Year-to-date exports are up $237.2 billion, or 12.0 percent, while imports have grown only $48.8 billion, or 1.9 percent, over that same stretch.
The three-month moving average deficit through July rose $11.9 billion to $78.5 billion, and it sits $11.7 billion above where it was at the same point last year.
