US trade deficit widens to $88.6 billion in July as computer imports surge

The US trade deficit widened to $88.6 billion in July 2026 from a revised $71.2 billion in June, the Census Bureau and the Bureau of Economic Analysis reported on 3 September.

Exports down, imports up

• Exports: $310.7 billion, down $6.6 billion (2.1%)
• Imports: $399.3 billion, up $10.8 billion (2.8%)
• Goods deficit: $119.6 billion, up $17.6 billion
• Services surplus: $31.0 billion, up $0.2 billion

On the export side, industrial supplies fell, including crude oil (down $4.5 billion) and nonmonetary gold (down $3.9 billion). On the import side, capital goods rose $14.4 billion, led by computers (up $6.9 billion) and computer accessories (up $6.6 billion).

By country

The largest bilateral goods deficits in July were with Mexico ($27.5 billion), China ($15.2 billion), the European Union ($8.9 billion) and Canada ($3.2 billion).

A smaller gap than last year

Despite July's jump, the deficit for January to July was $188.4 billion, or 29.6%, smaller than in the same period of 2025. Exports were 12.0% higher than a year earlier, while imports rose 1.9%. The comparison is flattered by early 2025, when imports surged as companies bought ahead of new tariffs.

Does the trade balance move the dollar?

Monthly trade data rarely moves the dollar much on its own, partly because the US deficit is financed by large inflows into US assets. It matters more for GDP, since net exports feed directly into growth estimates. The guide to the trade balance and current account explains both points, and GDP explained shows where trade fits in.