29.08.202512:43:06UTC+00US Goods Trade Deficit Larger Than Expected

In July 2025, the US trade deficit in goods expanded significantly, increasing by $18.7 billion from the previous month, reaching $103.6 billion. This figure considerably surpassed the anticipated $89.5 billion, as per an advance estimate. It represents the largest deficit in four months, approaching the record high of $162 billion seen in March, which was primarily due to inventory accumulation in response to impending US tariffs. Imports surged by 7.1% compared to the prior month, totaling $281.5 billion. This increase was predominantly driven by industrial supplies, which climbed 25.4% to $60.7 billion, along with capital goods rising 4.8% to $95.9 billion, foods increasing by 2.4% to $18.5 billion, consumer goods going up by 2.1% to $95.9 billion, and other goods increasing by 11.5% to $13.5 billion. In contrast, exports experienced a slight decrease of 0.1%, amounting to $178 billion. This decline was attributed to reduced sales of industrial supplies, dropping by 0.8% to $59.9 billion, consumer goods declining by 0.9% to $22.8 billion, and other goods decreasing by 2.4% to $8.7 billion. These declines were partially mitigated by increases in automotive vehicles, which rose by 2.2% to $13 billion, capital goods edging up by 0.7% to $59.8 billion, and foods, feeds, and beverages experiencing a modest growth of 0.5% to $13.8 billion.