financetom
Economy
financetom
/
Economy
/
US goods trade deficit widens sharply in July
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US goods trade deficit widens sharply in July
Aug 29, 2025 6:18 AM

WASHINGTON (Reuters) -The U.S. trade deficit in goods widened sharply in July as imports surged, suggesting trade could be a major drag on economic growth in the third quarter.

The goods trade gap soared 22.1% to $103.6 billion last month, the Commerce Department's Census Bureau said on Friday. Economists polled by Reuters had forecast the goods trade deficit would rise to $89.45 billion.

Imports of goods jumped $18.6 billion to $281.5 billion. Goods exports dipped $0.1 billion to $178.0 billion.

An ebb in import flows led to a sharp contraction in the trade deficit in the second quarter, which added a record 4.95 percentage points to gross domestic product growth that period.

The economy grew at a 3.3% annualized rate last quarter. GDP contracted at a 0.5% rate in the January-March quarter, weighed down by a sharp deterioration in the trade deficit that was driven by businesses front-running imports at a record pace before President Donald Trump's sweeping tariffs kicked in.

The Atlanta Federal Reserve is currently estimating GDP will increase at a 2.2% rate in the third quarter.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed sees a glimmer that recent US productivity gains may last
Fed sees a glimmer that recent US productivity gains may last
Dec 16, 2024
WASHINGTON (Reuters) - Dreanda Cordero reentered the job market this year after a five-year break to raise three children, landing a data entry position she was not thrilled about that required on-site work she had trouble juggling and coincided with health troubles of her own and one of her kids. She quit after two months.  But her next step demonstrated...
Fed sees a glimmer that recent US productivity gains may last
Fed sees a glimmer that recent US productivity gains may last
Dec 16, 2024
WASHINGTON (Reuters) - Dreanda Cordero reentered the job market this year after a five-year break to raise three children, landing a data entry position she was not thrilled about that required on-site work she had trouble juggling and coincided with health troubles of her own and one of her kids. She quit after two months.  But her next step demonstrated...
China's factory output up, but consumption still a drag
China's factory output up, but consumption still a drag
Dec 15, 2024
BEIJING (Reuters) -China's industrial output growth quickened slightly in November, while retail sales disappointed, keeping pressure on Beijing to ramp up stimulus for a fragile economy as it braces for more U.S. trade tariffs under a second Trump administration. The mixed set of data underlines the challenges facing Chinese leaders heading into 2025 when trade relations with the United States...
US Dollar Rises Early Monday, Focus on Retail Sales, FOMC, Personal Income, Spending This Week
US Dollar Rises Early Monday, Focus on Retail Sales, FOMC, Personal Income, Spending This Week
Dec 16, 2024
07:49 AM EST, 12/16/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Monday, except for a decline versus the pound, with the focus on retail sales data for November on Tuesday, the Federal Open Market Committee's rate decision Wednesday, and personal income data Friday before a relatively quiet Christmas holiday week. The week starts Monday...
Copyright 2023-2025 - www.financetom.com All Rights Reserved