The U.S. trade deficit July 2026 widened sharply to $88.6 billion, up $17.4 billion from the revised $71.2 billion deficit in June, according to data released by the U.S. Census Bureau and U.S. Bureau of Economic Analysis on September 3.
Exports fell $6.6 billion to $310.7 billion, while imports increased $10.8 billion to $399.3 billion. The monthly deficit rose 24.4%, with exports down 2.1% and imports up 2.8%.
Goods Deficit Drives July Increase
The increase was led by the goods deficit, which expanded $17.6 billion to $119.6 billion. The services surplus rose by $0.2 billion to $31.0 billion.
Goods exports declined $6.2 billion to $201.0 billion. Industrial supplies and materials fell $8.7 billion, including a $4.5 billion decline in crude oil and a $3.9 billion drop in nonmonetary gold. Capital goods increased $1.9 billion, while consumer goods rose $1.7 billion, including a $1.0 billion increase in pharmaceutical preparations. Services exports fell $0.4 billion to $109.7 billion, with declines in travel, financial services and transport partly offset by higher intellectual property charges and other business services.
Goods imports climbed $11.4 billion to $320.6 billion. Capital goods jumped $14.4 billion, including increases of $6.9 billion in computers, $6.6 billion in computer accessories and $1.2 billion in semiconductors. Industrial supplies and materials declined $1.8 billion, including a $1.8 billion fall in crude oil imports. Services imports fell $0.6 billion to $78.7 billion.
For the three months ending in July, the average goods and services deficit increased $11.9 billion to $78.5 billion. Average exports fell $6.4 billion to $316.0 billion, while average imports rose $5.5 billion to $394.5 billion. Compared with the three months ending in July 2025, the average deficit increased $11.7 billion, with exports up $33.5 billion and imports up $45.2 billion.
Year to date, the goods and services deficit was $188.4 billion, or 29.6%, lower than the same period in 2025. Exports increased $237.2 billion, or 12.0%, while imports rose $48.8 billion, or 1.9%. On a real 2017-dollar Census basis, the July goods deficit increased $12.0 billion, or 12.7%, to $106.4 billion. Real goods exports fell $2.7 billion, or 1.8%, to $150.8 billion, while real imports rose $9.3 billion, or 3.8%, to $257.2 billion.
In July, the U.S. recorded goods surpluses with the Netherlands ($7.8 billion), South and Central America ($6.6 billion), Hong Kong ($3.1 billion), the United Kingdom ($2.5 billion), Brazil ($2.4 billion), Singapore ($1.9 billion), Saudi Arabia ($1.3 billion), Australia ($1.2 billion) and Belgium ($0.9 billion). Deficits included Mexico ($27.5 billion), Vietnam ($23.3 billion), Taiwan ($18.1 billion), China ($15.2 billion), South Korea ($10.4 billion), the European Union ($8.9 billion), Germany ($5.6 billion), India ($5.0 billion), Malaysia ($4.8 billion), Japan ($4.2 billion), Ireland ($3.9 billion), Canada ($3.2 billion), Italy ($2.5 billion), France ($1.3 billion), Switzerland ($0.6 billion) and Israel ($0.5 billion).
The Census Bureau said July data included a $7.2 billion increase in the Mexico deficit to $27.5 billion, a shift with Switzerland from a $2.9 billion June surplus to a $0.6 billion July deficit, and a $3.7 billion reduction in the Canada deficit to $3.2 billion. Second-quarter balance-of-payments data showed surpluses with the Netherlands, South and Central America, Singapore, Hong Kong, Brazil, Ireland, Switzerland, Australia, the United Kingdom, Saudi Arabia, Belgium and the European Union, while deficits were recorded with Vietnam, Taiwan, Mexico, China, Germany, South Korea, Canada, India, Malaysia, Italy, France, Japan and Israel. The June data were also revised, with exports raised by $2.6 billion and imports by $0.5 billion. The next release, covering August 2026, is scheduled for October 6, 2026.
