US goods trade deficit widens 17% to $118.8 billion in July

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.