US Goods-Trade Deficit Widens to US$118.8 Billion on Capital Imports

Washington, 27 August 2026 – The United States merchandise-trade deficit widened sharply in July to US$118.8 billion, the largest since March 2025, as companies increased imports of capital equipment while goods exports declined. The shortfall expanded 17.2% from the previous month and exceeded the US$100.5 billion median estimate among economists, presenting a more pronounced imbalance than markets had anticipated. The advance figures are not adjusted for inflation and will be followed by more complete trade data.

Merchandise imports rose 3.7%, driven by the largest monthly increase in capital-goods shipments since 1993. That category includes computers, accessories, semiconductors and telecommunications equipment, making the surge particularly relevant to investors tracking the artificial-intelligence infrastructure cycle. Healthy demand for imported equipment suggests US companies continue to commit capital to computing capacity and digital networks despite uncertainty surrounding tariffs, supply chains and the interest-rate outlook.