U.S. Trade Deficit Swells to $88.6 Billion as AI Chip and Computer Imports Surge
Updated
Updated · The New York Times · Sep 3
U.S. Trade Deficit Swells to $88.6 Billion as AI Chip and Computer Imports Surge
3 articles · Updated · The New York Times · Sep 3
Summary
$88.6 billion marked the U.S. trade gap in July, up more than 24% from June and the widest deficit in 16 months.
Imports rose 2.8% to $399.3 billion as purchases of computers, accessories and semiconductors jumped, while exports fell 2.1% to $310.7 billion on lower gold and crude oil shipments.
Capital-goods imports hit a record in July, and the U.S. deficit with Taiwan reached a record $20.7 billion; gaps with Mexico, Vietnam, Thailand and South Korea also widened.
The surge undercuts President Trump's tariff drive: electronics including chips and smartphones have been exempt for more than a year, even after new July tariffs on more than 80 countries.
Economists say AI data-center demand is keeping high-value electronics imports elevated, limiting tariffs' ability to shrink the deficit even as chip duties are expected soon.