US trade deficit surges 24.4% to $88.6 billion in July, with $5 billion goods gap with India

The US goods and services trade deficit jumped 24.4% in July to $88.6 billion, an increase of $17.4 billion from a revised $71.2 billion in June, according to the US Bureau of Economic Analysis and the US Census Bureau.

Imports rose 2.8% to $399.3 billion during the month, while exports fell 2.1% to $310.7 billion. Most of the increase came from goods trade. The goods deficit widened by $17.6 billion to $119.6 billion, while the services surplus increased by $200 million to $31 billion.

Goods imports rose by $11.4 billion to $320.6 billion, driven largely by capital goods. Computer imports increased by $6.9 billion, computer accessories by $6.6 billion and semiconductors by $1.2 billion. Goods exports fell by $6.2 billion to $201 billion, including declines in industrial supplies and materials, crude oil and nonmonetary gold.

The United States recorded a $5 billion goods trade deficit with India in July. Its largest goods deficit was with Mexico, at $27.5 billion, followed by Vietnam at $23.3 billion, Taiwan at $18.1 billion, China at $15.2 billion, South Korea at $10.4 billion and the European Union at $8.9 billion. The United States also ran goods deficits with Germany, Malaysia, Japan and Canada.

Services offered only a modest offset. Services exports fell by $400 million to $109.7 billion, while services imports declined by $600 million to $78.7 billion. Despite the sharp monthly increase, the deficit remained lower in the first seven months of the year, down $188.4 billion, or 29.6%, from the same period in 2025.

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The goods and services deficit was USD 88.6 billion in July, up USD 17.4 billion from USD 71.2 billion in June.