President Donald Trump‘s aggressive use of tariffs to shrink the U.S. trade gap is falling short, as fresh data show the trade deficit just hit its worst monthly level since March despite rising duties on foreign goods.
In July, U.S. goods and services trade deficit widened to $78.3 billion, up from $59.1 billion in June, according to the Bureau of Economic Analysis.
That was worse than economists’ expectations of a $75.7 billion shortfall and marked the largest monthly trade gap since March 2025.
The trade deficit is now virtually unchanged from a year ago, signaling that Trump’s tariffs—aimed at cutting imports and protecting American industries—have yet to yield meaningful results.
Chart: US Trade Deficit Remains Deep In The Red
Imports Surge While Export Growth Stalls
The worsening U.S. trade gap in July was driven almost entirely by a sharp rise in imports, which climbed 5.9% from June to $358.8 billion, while exports …