Background

The monthly U.S. trade deficit in goods and services jumped 32.5 percent in July as imports and exports continued to be affected by U.S. tariff and trade policies.

According to the Census Bureau, imports and exports of capital goods hit all-time highs in July, as did imports of other goods. Individual deficits with Vietnam and Taiwan were the highest on record, as were imports from those two countries for the second straight month.

Imports of $358.8 billion in July were up 5.9 percent from June. Imports of goods rose 6.9 percent to $283.3 billion, with increases of $9.6 billion for non-monetary gold, $1.5 billion for computers, and $900 million for telecommunications equipment along with decreases of $1.1 billion for pharmaceutical preparations and $1.0 billion for trucks, buses, and special-purpose vehicles. Services imports gained 2.3 percent to $75.5 billion.

Exports edged up 0.3 percent to $280.5 billion in July. Exports of goods were up just 0.1 percent to $179.4 billion, with increases of $2.9 billion for non-monetary gold, $900 million for computer accessories, and $400 million for trucks, buses, and special-purpose vehicles along with decreases of $2.5 billion for finished metal shapes and $1.5 billion for excavating machinery. Services exports gained 0.1 percent to $101.0 billion.

The monthly U.S. trade deficit increased from $59.1 billion in June to $78.3 billion in July. The deficit in goods trade jumped 21.1 percent to $103.9 billion while the services trade surplus fell 4.1 percent to $25.6 billion.

For the year to date the U.S. trade deficit was up 30.9 percent from the same period in 2024 as imports rose 10.9 percent and exports gained 5.5 percent.

For the month of June 2025, trade deficits and surpluses with major trading partners were as follows.

Country/region

Deficit

% Change

Surplus

% Change

Mexico

$16.6 billion

+1.8

 

 

Vietnam

$16.1 billion

-0.1

 

 

China

$14.7 billion

+56.4

 

 

Taiwan

$13.5 billion

+4.8

 

 

European Union

$8.6 billion

-9.5

 

 

Switzerland

$7.7 billion

n/a

 

 

India

$5.6 billion

+5.7

 

 

Germany

$5.4 billion

+35.0

 

 

Canada

$5.4 billion

+238.5

 

 

South Korea

$5.0 billion

-9.1

 

 

Japan

$4.8 billion

-15.8

 

 

Malaysia

$2.7 billion

-12.9

 

 

Ireland

$2.6 billion

-50.9

 

 

Italy

$2.2 billion

+37.5

 

 

Israel

$0.7 billion

+600

 

 

Australia

$0.4 billion

Shift from $1.6 billion surplus

 

 

France

$0.3 billion

-57.1

 

 

Netherlands

 

 

$4.8 billion

-22.6

South/Central America

 

 

$4.6 billion

+4.5

Hong Kong

 

 

$1.9 billion

+18.8

United Kingdom

 

 

$1.8 billion

-18.2

Belgium

 

 

$1.0 billion

+900

Brazil

 

 

$0.5 billion

-61.5

Saudi Arabia

 

 

$0.3 billion

0

Singapore

 

 

$0.3 billion

+50

 

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