Overview
- The U.S. goods and services deficit jumped to $88.6 billion in July, a 24.4% rise from June, driven by record capital‑goods imports tied to investment in AI infrastructure.
- Imports of computers, computer accessories and semiconductors lifted capital‑goods imports to a record $140.3 billion while total exports fell to $310.7 billion largely because crude oil and nonmonetary gold shipments declined.
- The goods deficit hit record monthly shortfalls with key partners, including a $20.7 billion gap with Taiwan and new highs with Mexico, Vietnam, Thailand, South Korea and Malaysia.
- Canada’s July trade surplus plunged to C$769 million as exports of energy and metals fell and imports rose, a deterioration that precedes planned U.S. tariff increases.
- Pakistan’s July–August trade gap widened about 18.1% year‑on‑year to roughly $7.12 billion as imports grew faster than exports, prompting a government Trade Facilitation Board and costly international borrowing to shore up external financing.