US Goods Trade Deficit Largest Since March 2025

The US goods trade deficit widened to $118.8 billion in July 2026 from $101.4 billion in June, according to preliminary data. It was the largest deficit since March 2025, when it reached a record $158.7 billion. Imports rose 3.7% to a 16-month high of $318.2 billion, driven by higher purchases of capital goods (11.3%) and consumer goods (0.1%), which more than offset declines in industrial supplies (-3.9%), automotive vehicles (-1.6%), and foods, feeds, and beverages (-0.9%). Meanwhile, exports fell 2.9% to $199.4 billion, marking a third consecutive monthly decline and their lowest level since January. The decrease was led by lower shipments of industrial supplies (-11.2%), foods, feeds, and beverages (-1.4%), and automotive vehicles (-0.7%).

The US goods trade deficit narrowed to $101.5 billion in June 2026 from a 14-month high of $105.9 billion in May, according to preliminary data. Exports fell 1.8% to $204.7 billion, marking a second straight monthly decline and moving further below April's record high, driven by lower shipments of industrial supplies (-4.4%), foods, feeds, and beverages (-3.1%), and capital goods (-1.1%). Imports declined at a faster 2.6% to $306.2 billion, with purchases falling across all major categories, including consumer goods (-3.8%), capital goods (-2.0%), industrial supplies (-1.9%), vehicles (-2.5%), and foods, feeds, and beverages (-2.5%). In the first half of 2026, the cumulative goods trade deficit narrowed to $535.5 billion from $716.6 billion in the same period a year earlier, suggesting trade flows are continuing to normalize following last year's US tariff announcements, although uncertainty surrounding US trade policy remains.

The goods trade deficit in the United States widened to $105.8 billion in May of 2026 from $83 billion in the previous month, on a seasonally adjusted basis, to mark the widest trade gap in over one year. It contrasted to expectations of an $85 billion gap. Imports rose by 3.6% to $313.4 billion, the highest in 14 months despite the tariffs passed by the presidential administration. Foreign purchases were higher for consumer goods (5.7% to $59.5 billion), industrial supplies (4.8% to $55.9 billion), foods, feeds, and beverages (4.3% to $18.2 billion), and other goods (11.5% to $15.4 billion). In turn, exports dropped by 5.4% to $207.7 billion, the third-highest on record, to general inflation of domestically-produced industries. Sales fell for industrial supplies (-7% to $82.7 billion) and consumer goods (-9.2% to $20.7%).