This photo taken on May 10, 2025 shows cargo ships loaded with containers at the Port of Los Angeles in California, United States. (Photo by Qiu Chen/Xinhua)

This photo taken on May 10, 2025 shows cargo ships loaded with containers at the Port of Los Angeles in California, United States. (Photo by Qiu Chen/Xinhua)

Data released by US Commerce Department’s Bureau of Economic Analysis (BEA) on Wednesday local time showed that the US trade deficit widened to $78.3 billion in July, as imports surged, with the gap largely exceeding the revised $59.1 billion deficit in June.

Analysts told the CCTV News that US companies rushed to import goods and materials ahead of President Donald Trump’s announcement of new tariffs on global trade partners, pushing the US trade deficit in July to a four-month high.

In early July, Trump extended the deadline to August 1 following a 90-day pause on higher tariff rates, just two days before the original July 9 expiration date, the Xinhua News Agency reported. 

US’ July imports recorded at $358.8 billion, up 5.9 percent month-on-month, and exports were $280.5 billion, up 0.3 percent month-on-month. The goods and services deficit hit $78.3 billion in July, surged by 32.5 percent from the previous month, BEA’s data showed. 

The July increase in the goods and services deficit reflected an increase in the goods deficit of $18.2 billion to $103.9 billion and a decrease in the services surplus of $1.1 billion to $25.6 billion, the data showed. 

Year-to-date, US’ goods and services deficit increased $154.3 billion, or 30.9 percent, from the same period in 2024. Exports increased $103.1 billion or 5.5 percent. Imports increased $257.5 billion or 10.9 percent.

Notably, US deficit with China increased $5.3 billion to $14.7 billion in July. Exports decreased less than $0.1 billion to $10.0 billion and imports increased $5.3 billion to $24.7 billion, according to BEA.

A Reuters report said on Wednesday that Trump administration’s aggressive tariffs have caused wild swings in imports and ultimately the trade deficit, distorting the overall economic picture. A US appeals court ruled last Friday that most of Trump’s duties, which have boosted the nation’s average tariff rate to the highest level since 1934, were illegal, creating more uncertainty for businesses.

US labor market condition also affected. Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 237,000 for the week ended August 30, the US Labor Department said, exceeding forecast 230,000 claims for the latest week, according to another Reuters report on Wednesday.

Job growth has shifted into stall-speed, with economists blaming Donald Trump’s sweeping import tariffs and an immigration crackdown that is hampering hiring at construction sites and restaurants, the report noted. 

Global Times