US trade deficit hits $88.6bn as tech imports jump

The US trade deficit widened in July to $88.6 billion, its largest level since March 2025, as technology imports rose during the AI build-out, Commerce Department data showed Thursday.

The trade gap increased 24.4 percent from the previous month. Exports fell 2.1 percent to $310.7 billion, while imports rose 2.8 percent to $399.3 billion.

Imports were bolstered by computers, computer accessories and semiconductors. Exports of crude oil and gold fell.

The US deficit with Taiwan, a major chip manufacturer, reached a record $20.7 billion for the month. US trade gaps with Mexico, Vietnam, Thailand, South Korea and Malaysia also hit monthly records.

US trade has fluctuated since President Donald Trump returned to the White House last year and imposed broad tariffs on allies and competitors. Businesses have increased imports before new duties took effect.

American officials have exempted products such as chips, smartphones and other electronics from many duties. Commerce Secretary Howard Lutnick told CNBC on Wednesday that Washington was looking to develop new tariffs on semiconductors, saying the policy would be targeted toward companies that do not build in the United States.

The US Supreme Court struck down many of Trump's global tariffs in February. Officials replaced them in July with fresh duties targeting 60 trading partners, and a separate trade investigation involving 16 partners including China, the European Union and Taiwan could lead to another round of tariffs.

The US deficit with Canada narrowed in July. Trump imposed a 50-percent duty on billions of dollars in Canadian goods last month, prompting planned retaliation from Ottawa.

Trade flows have also been affected by fallout from the Middle East war, with Iran largely blocking the Strait of Hormuz, a key waterway for global energy and fertilizer transit.