US trade deficit widens to $88.6 billion in July as computer imports hit a record
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The US goods and services trade deficit widened to $88.6 billion in July, up $17.4 billion from a revised $71.2 billion in June, the Census Bureau and Bureau of Economic Analysis reported September 3. It is the largest monthly deficit since March 2025, when importers rushed goods in ahead of tariffs.
Exports fell $6.6 billion to $310.7 billion. Imports rose $10.8 billion to $399.3 billion, a record. The goods deficit alone reached $119.6 billion, and the services surplus went up to $31.0 billion.
| Month | Deficit | Exports | Imports |
|---|---|---|---|
| March 2025 | $133.0B | $283.4B | $416.4B |
| October 2025 | $37.4B | $301.2B | $338.5B |
| April 2026 | $52.9B | $329.9B | $382.8B |
| May 2026 | $75.8B | $320.0B | $395.7B |
| June 2026 | $71.2B | $317.3B | $388.5B |
| July 2026 | $88.6B | $310.7B | $399.3B |
Computers drove the import gain
Imports of capital goods rose $14.4 billion in July to $140.3 billion, a record. Computers accounted for $6.9 billion of the increase and computer accessories another $6.6 billion. Semiconductors added $1.2 billion. Every other import category was flat or down.
For the year through July, computer imports total $220.8 billion, double the $109.9 billion over the same months of 2025. Computer accessories are up 67% to $133.3 billion and semiconductors up 71% to $75.0 billion. Capital goods imports overall are running 36% ahead of last year at $870.0 billion.
The Census Bureau tracks a separate advanced technology products series. Its July deficit was $71.3 billion, the largest single month on record, and the information and communications component alone ran a $74.6 billion deficit. Through July that component's deficit is $357.8 billion, against $183.5 billion a year earlier.
Taiwan and Vietnam have passed China
On a not seasonally adjusted basis, the largest bilateral goods deficits through July are with Vietnam at $138.9 billion, Mexico at $128.9 billion, and Taiwan at $127.8 billion. China is fourth at $91.2 billion, down from $128.8 billion over the same period of 2025. Imports from China are down 19% to $156.4 billion. Imports from Taiwan are up 60% to $162.3 billion, and the advanced-technology deficit with Taiwan has doubled to $121.5 billion. Thailand's deficit has nearly doubled to $66.3 billion.
The July seasonally adjusted deficit with Mexico rose $7.2 billion to $27.5 billion on a $7.0 billion jump in imports. The deficit with Canada narrowed $3.7 billion to $3.2 billion.
The year-to-date decline is a base effect
The release reports the deficit down $188.4 billion, or 29.6%, from the first seven months of 2025. Almost all of that reflects the first quarter of 2025, when the monthly deficit ran between $117 billion and $133 billion as companies stockpiled goods ahead of tariffs, with pharmaceuticals from Ireland the largest single item. Pharmaceutical imports through July are down 47% to $100.3 billion, and imports from Ireland are down 64% to $34.7 billion. Set that quarter aside and the deficit has been rising since April.
Exports of goods fell $6.2 billion in July, led by crude oil and gold. The average export price of crude dropped from $95.82 a barrel in June to $81.64 in July, after peaking at $107.85 in May. Nonmonetary gold exports fell $3.9 billion, though for the year they still total $79.0 billion against $36.0 billion in 2025.
Adjusted for prices, the real goods deficit rose 12.7% to $106.4 billion. Exports and imports for January through June were revised, with June services exports revised up $2.3 billion. The August report is scheduled for October 6. Other July indicators are in our coverage of retail sales and business formation.
Sources
All figures are from U.S. International Trade in Goods and Services, July 2026 (CB 26-142, BEA 26-40), released September 3, 2026 by the U.S. Census Bureau and Bureau of Economic Analysis. Monthly totals, the real goods deficit, and end-use detail are seasonally adjusted. Country figures cited as year-to-date are not seasonally adjusted, from the release's exhibits 14 and 16a. Crude oil unit prices are from exhibit 17. The full exhibits are at the Census Bureau foreign trade release page.
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What was the US trade deficit in July 2026?
The goods and services deficit was $88.6 billion, up $17.4 billion from a revised $71.2 billion in June, according to the Census Bureau and Bureau of Economic Analysis. It is the largest monthly deficit since March 2025. Exports fell to $310.7 billion and imports rose to a record $399.3 billion.
Why did imports rise in July 2026?
Capital goods imports rose $14.4 billion to a record $140.3 billion, with computers up $6.9 billion, computer accessories up $6.6 billion, and semiconductors up $1.2 billion. Every other import category was flat or down. Computer imports for the year through July total $220.8 billion, double the same period of 2025.
Which country does the US have the largest trade deficit with?
Through July 2026, on a not seasonally adjusted basis, the largest goods deficits are with Vietnam at $138.9 billion, Mexico at $128.9 billion, and Taiwan at $127.8 billion. China has dropped to fourth at $91.2 billion, down from $128.8 billion a year earlier, as imports from China fell 19% and imports from Taiwan rose 60%.
