US Trade Gap Widens to 4-Month High

The US trade gap widened sharply to $78.3 billion in July 2025, the highest in four months, compared to a revised $59.1 billion gap in June and forecasts for a $75.7 billion shortfall. Exports rose a meagre 0.3% to $280.5 billion, led by nonmonetary gold, computer accessories, civilian aircraft, trucks, buses, charges for the use of intellectual property and government goods and services. In contrast, sales fell for finished metal shapes, and excavating machinery. Imports jumped 5.9% to 358.8 billion, led by purchases of nonmonetary gold, computers, telecommunications equipment, jewellery and transport. Purchases fell for pharmaceutical preparations, semiconductors, trucks, buses, and special purpose vehicles, and passenger cars. The largest trade deficits were recorded with Mexico ($16.6 billion), Vietnam ($16.1 billion), China ($14.7 billion), and Taiwan ($13.5 billion). The US also ran deficits of $8.6 billion with the EU, $5.5 billion with India, and $5.4 billion with Canada.