(Sept 3): The US trade deficit widened sharply in July to the largest since early 2025, reflecting a surge in imports of computers and other technological equipment.

The gap in goods and services trade grew 24.4% from the prior month to US$88.6 billion (RM358.4 billion), Commerce Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for a deficit of US$90.2 billion.

The value of imports increased 2.8% and exports fell 2.1%.

The report showed an 11.4% surge in imports of capital goods — a category that includes computers and accessories, semiconductors and telecommunications equipment but excludes autos — the largest advance since 1993.

The rapid rate of technology imports reflects the investment race in artificial intelligence, a key driver of US economic growth. At the same time, the trade deficit has fluctuated in recent months as the Iran war helped boost global demand for US petroleum products while American firms try to mitigate supply-chain disruptions.

While many tariffs were struck down by the Supreme Court earlier this year, the Trump administration is using other authorities to impose duties. The US levied 50% duties on billions of dollars of Canadian goods, and Canada retaliated after trade talks fell apart last month.

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