US trade deficit widens in July; goods deficit rises while services surplus slightly increases

The U.S. goods and services deficit increased to $88.6 billion in July, up $17.4 billion from $71.2 billion in June (with June revised). The underlying split shows exports falling to $310.7 billion (down $6.6 billion on the month), while imports rose to $399.3 billion (up $10.8 billion). The resulting widening deficit therefore reflects both weaker export performance and firmer import demand.

Looking inside the balance, the larger deficit was driven by a goods deficit that rose by $17.6 billion to $119.6 billion. By contrast, the services surplus increased slightly, up $0.2 billion to $31.0 billion. In component terms, goods exports declined to $201.0 billion, with notable decreases in industrial supplies and materials, crude oil, and nonmonetary gold. Exports of services were also lower, slipping to $109.7 billion.

On the import side, goods imports increased to $320.6 billion, with capital goods rising $14.4 billion and computers and computer accessories also higher. The report highlights that crude oil imports fell $1.8 billion, but that overall goods import growth was broad enough to push the goods deficit wider. Year-to-date, the deficit is still down $188.4 billion (29.6%) versus the same period in 2025, though the three-month moving average shows the deficit has been trending up recently.

Next, traders should watch the next scheduled release on Tuesday, October 6, 2026, and whether the recent widening in the three-month moving average continues, as it would affect the near-term read-through for net exports in GDP-linked narratives.