Intermoney | Trade balance data showed that the US trade deficit widened significantly in July to $78.3 billion (from $59 billion in June), exceeding estimates and due to a sharp increase in imports before reciprocal tariffs came into effect for a number of countries that had not yet reached trade agreements. Imports rose 5.9% to $358.8 billion, boosted by imports of goods, which rose 6.9%. Not only did we see an increase in supplies such as non-monetary gold and industrial materials, but imports of capital goods reached a peak of £96 billion, highlighting the increase in purchases of goods such as computers, telecommunications equipment and other industrial machinery. Logically, the modest increase in exports (0.3%) was far from sufficient to even partially offset the other side of the balance.
US trade deficit grows significantly from $59 billion in June to $78.3 billion in July due to 5.9% increase in imports
