US trade deficit jumps to $88.6 billion in July 2026
Business
The US trade deficit shot up 24.4% in July 2026, reaching $88.6 billion, mostly because Americans and businesses spent more, especially on tech and AI gear.
Economists had expected a big gap, but this jump could put extra strain on the economy.
US inflation adjusted goods deficit $106.4B
Imports rose to $399.3 billion, fueled by imports of capital goods and strong increases in computers, computer accessories, and semiconductors tied to AI growth.
Meanwhile, exports dropped to $310.7 billion as shipments of industrial supplies like crude oil and gold fell.
When adjusted for inflation, the goods trade deficit hit $106.4 billion, potentially slowing down economic growth even more in the months ahead.