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US trade deficit widest in two years on imports surge [Video]

The US trade deficit in July expanded to its largest since mid-2022, according to government data released Wednesday, as imports rose more quickly than exports.

Overall, the trade gap widened to $78.8 billion, from a revised $73.0 billion in June, the Department of Commerce said.

The growth was slightly more than analysts expected and the widest since June 2022.

Businesses were likely to be frontloading imports ahead of an increase in tariffs, analysts say, given that Washington earlier unveiled plans to hike levies on Chinese goods ranging from semiconductors to batteries and solar panels.

In July, imports jumped 2.1 percent to $345.4 billion, boosted by capital goods like computer accessories, as well as by industrial supplies.

Exports, meanwhile, edged up 0.5 percent to $266.6 billion, the Commerce Department report said.

Among individual segments, exports of semiconductors rose but auto shipments and that of consumer goods fell as well.

Capital goods …

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