US Trade Deficit Hits Record $88.6 Billion in July Amid AI Tech Imports
Government data reveals the US trade deficit widened to its largest level since March 2025, driven by surging imports of semiconductor equipment.
The US trade deficit in July expanded to a record $88.6 billion, marking the widest gap in over a year. Imports reached $399.3 billion, up 2.8% from the previous month, while exports dropped 2.1% to $310.7 billion. Imports of computers, computer accessories, and semiconductors specifically fueled this growth. Exports of crude oil and gold declined during the period. The trade gap with Taiwan hit a record $20.7 billion, alongside highest levels seen with Mexico, Thailand, South Korea, and Malaysia. President Donald Trump returned to the White House last year to implement sweeping tariffs intended to narrow the trade gap. While officials have exempted electronic products from these tariffs, Commerce Secretary Howard Lutnick stated on Wednesday that new targeted tariffs on semiconductors are under development.
