US trade deficit hits highest since March 2025, surges 24.4% to $88.6 billion in July as AI boom drives imports

The US trade deficit widened sharply in July, reaching its highest level since March 2025, as strong demand for technology products linked to the artificial intelligence build-out pushed imports higher. The trade deficit increased 24.4% to $88.6 billion in July from $71.2 billion in June, according to data released Thursday by the Commerce Department’s Bureau of Economic Analysis and Census Bureau. The increase came as imports rose faster than exports. Imports climbed 2.8% to $399.3 billion, while exports fell 2.1% to $310.7 billion. AI boom lifts imports The surge in imports was led by capital goods, reflecting continued investment in…