Kathmandu. The US trade deficit in July widened to its highest level since March 2025, public government data showed on Thursday. Statistics show that imports have increased due to the rapid expansion of AI technology.
Since returning to the White House last year, President Donald Trump has tried to reduce the trade deficit by imposing sweeping tariffs on friendly and competing countries. Since then, there have been major ups and downs in American business.
The trade deficit of the world's largest economy rose to $88.6 billion in July. This is an increase of 24.4 percent compared to the previous month. Exports of crude oil and gold have decreased, while imports of technology products have increased.
According to the US Department of Commerce, exports decreased by 2.1 percent to 3 trillion 10 billion 700 million dollars. Imports increased by 2.8 percent to three billion 99 billion 300 million dollars. It has been increased by the import of computers, computer accessories and semiconductors.
The U.S. deficit with Taiwan, a major producer of chips, hit a record high of $20.7 billion for the month. The trade deficit with Mexico, Vietnam, Thailand, South Korea and Malaysia has also reached a high level.
Although President Trump's tariffs have hit economies that account for the majority of US trade, US officials have exempted products such as chips, smartphones and other electronics.
Commerce Secretary Howard Latnick told CNBC on Wednesday that Washington is planning to impose new tariffs on semiconductors. Over the past year, businesses have rushed to increase imports ahead of new US tariffs.
Some companies expect more challenges in managing Trump's policies. This has increased business costs, according to the Institute for Supply Management's service sector survey, activity in this sector increased in August. The US Supreme Court struck down several of Trump's global tariffs in February. But authorities imposed new tariffs targeting 60 trading partners in July.
A separate trade investigation targeting 16 partners, including China, the European Union and Taiwan, may decide to impose additional customs duties, the ministry said.
The US is in a trade war with its neighbor Canada. In July, the loss with it has decreased. Last month, Trump imposed 50 percent tariffs on billions of dollars of Canadian goods, prompting Ottawa to plan retaliation.
The impact of the Middle East war is also affecting the flow of trade. Iran has virtually blocked the Strait of Hormuz, a key global energy and freight transport route.
