U.S. trade deficit in goods widened sharply in July as firms raced to avoid tariffs

Imports surged ahead of the White House’s tariff deadline in early August

By Greg Robb
Last Updated: Aug. 29, 2025 at 10:25 a.m. ET
First Published: Aug. 29, 2025 at 8:34 a.m. ET

The U.S. trade deficit in goods widened 22.1% to $103.6 billion in July from $84.9 billion, according to the Commerce Department’s advance estimate released Friday. ... The deficit was much wider than expected. Economists expected the deficit to widen to $87.7 billion, according to the Econoday research firm.

Economists said that imports surged ahead of the Trump White House’s deadline in early August for country-specific tariffs. ... “The wide fluctuations in trade flows associated with tariffs are not yet fully behind us,” said Stephen Stanley, chief U.S. economist at Santander.

Imports increased 7.1% to $281.5 billion in July, according to an advance version of the government’s monthly trade report.

Industrial supplies and capital goods were the primary drivers of the increase in imports. Stanley said this could be related to imports of copper ahead of the administration’s move to impose tariffs on the metal in late July.

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