Economic Buzz: US goods deficit hits highest in 16 months

The trade deficit in goods hit the widest in 16 months in July as exports fell for a third straight month and ‌capital goods imports surged. Census Bureau data showed the U.S. goods trade deficit widened to $118.8 billion in July from $101.4 billion in June, marking the largest goods trade gap since March 2025, when it hit a record. Exports, which had hit a record in April, declined 2.9% ⁠to $199.4 billion, the lowest level since January. This drop was led by an 11.2% drop in exports of industrial goods. Imports gained 3.7% to $318.2 billion, the highest level since the record high in March 2025, led by an 11.3% jump in capital goods imports.

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