AI Investment Surge Drives U.S. Trade Deficit to $88.6B in July
The U.S. goods and services trade deficit widened to $88.6 billion in July 2026, up 24.4% from June, driven by a record surge in capital goods imports linked to artificial intelligence infrastructure. While exports fell 2.1%, imports rose 2.8%, with computer accessories and semiconductors accounting for the largest monthly increases on record. The deficit remains the largest since early 2025, though year-to-date figures show a 29.6% decrease compared to 2025. This sharp monthly increase contrasts with the narrowing trend seen in June and may negatively impact third-quarter GDP estimates.




