September 26, 2025
President-Donald-Trump

The US trade deficit expanded more than expected in July, government data showed Thursday, on a surge in imports analysts expect was driven by a rush to beat another wave of President Donald Trump’s tariffs.
The overall US trade deficit jumped 32.5 percent to $78.3 billion in July, the Department of Commerce said.

This came on the back of a 5.9-percent rise in imports to $358.8 billion, while exports edged up just 0.3 percent to $280.5 billion.

A Briefing.com consensus forecast had expected a smaller deficit figure of 64.2 billion.

Analysts at Pantheon Macroeconomics believe the growing trade gap is connected with “another wave of pre-tariff stockpiling,” they said in a recent report.

Trump slapped a 10-percent tariff on almost all US trading partners in April, but twice postponed a plan for these duties to rise to varying higher levels for dozens of economies.

The steeper levels, hitting key partners like the European Union, Japan and India, finally took effect in early August.

Analysts believe that businesses that boosted imports to get ahead of tariff hikes are running down on existing inventory, meaning that they will likely have to make new purchases at higher business costs.

Among sectors, imports of industrial supplies and consumer goods both jumped, the Commerce Department report said.

The US goods deficit with China widened $5.3 billion to $14.7 billion in July, the report added.     (AFP)

132 thoughts on “US trade deficit expands more than expected – official”

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