The US trade deficit widened in July to a four-month high as companies raced to import goods and materials before President Donald Trump unveiled new tariffs on global trading partners.
The goods and services trade gap grew nearly 33% from the prior month to $78.3 billion, Commerce Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for a nearly $78 billion deficit.
The value of imports increased 5.9% in July, the most since the start of the year, while exports edged up. The figures aren't adjusted for inflation.
The surge in imports was driven by inbound shipments of industrial supplies, which rose to the highest level in four months. Imports of consumer goods also climbed, and incoming shipments of capital equipment excluding autos advanced by the most since the start of the year.
The report illustrates a rush by US companies to secure more goods before so-called reciprocal tariff rates were anticipated to take effect for a slew of countries that hadn't yet reached trade deals with the US. Imports had fallen for three straight months after a massive first-quarter surge driven by businesses trying to front-run the president's April 2 tariff announcement.
The large monthly swings in trade this year that have introduced similar volatility in the government's measure of economic activity — gross domestic product
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