Briefing.com: Trade Balance

Updated: 04-Sep-25 09:31 ET

July Trade Balance

Updated: 04-Sep-25 09:31 ET

Highlights

The July trade deficit widened to $78.3 billion (Briefing.com consensus: -$64.2 billion) from an upwardly revised $59.1 billion (from -$60.2 billion), with exports being $0.8 billion more than June exports and imports being $20.0 billion more than June imports.

Key Factors

Exports of capital goods increased $0.6 billion.
Exports of automotive vehicles, parts, and engines increased $0.3 billion.
Imports of industrial supplies and materials increased $12.5 billion, with nonmonetary gold up $9.6 billion.
Imports of consumer goods increased $1.3 billion.
Imports of automotive vehicles, parts, and engines decreased $1.4 billion.
The real goods deficit increased $15.5 billion to $100.1 billion. That is 14.5% above the Q2 average.

Big Picture

The key takeaway from the report is that the surge in imports reflects an easing of some of the tariff pressures that had been applied by the announcement of higher reciprocal rates. The downside, however, is that the net export component will be a negative component in the calculation of Q3 GDP.