The U.S. trade deficit in goods widened 22.1% to $103.6 billion in July from $84.9 billion, according to the Commerce Department’s advance estimate released Friday.
The deficit was much wider than expected. Economists expected the deficit to widen to $87.7 billion, according to the Econoday research firm.
“The wide fluctuations in trade flows associated with tariffs are not yet fully behind us,” said Stephen Stanley, chief U.S. economist at Santander.
Imports increased 7.1% to $281.5 billion in July, according to an advance version of the government’s monthly trade report.
Industrial supplies and capital goods were the primary drivers of the increase in imports. Stanley said this could be related to imports of copper ahead of the administration’s move to impose tariffs on the metal in late July.
ISM: "US manufacturing contracted for a sixth straight month in August as factories dealt with the fallout from the Trump administration's import tariffs, with some manufacturers describing the current business environment as 'much worse than the Great Recession'"
Brutal: pic.twitter.com/x7DQirmdPh
— Scott Lincicome (@scottlincicome) September 2, 2025