WASHINGTON — U.S. imports and exports rebounded modestly in July after months of sluggish trade, but a surge in foreign goods arriving ahead of new tariffs drove the trade deficit sharply higher.
The Commerce Department reported Thursday that the goods and services deficit jumped 32.5 percent to $78.3 billion in July, up from a revised $59.1 billion in June. Imports rose 5.9 percent to $358.8 billion, while exports edged up just 0.3 percent to $280.5 billion.
Much of the increase in imports was tied to a rush in gold buying before steep tariffs on Switzerland took effect. The U.S. trade deficit with Switzerland swelled by $7.6 billion in July, while the deficit with China grew by $5.3 billion. Imports of consumer goods also climbed, even as auto imports declined under a 25 percent tariff on foreign vehicles, and pharmaceuticals fell after months of stockpiling.
The July rebound offered a brief reprieve for exporters after months of volatility triggered by President Trump’s sweeping tariffs. Following his election, importers rushed to bring in goods ahead of expected levies, sending imports and the trade deficit soaring. Later, draconian tariffs on Chinese products caused imports to plunge, temporarily narrowing the deficit.
While the administration paused some tariffs over the summer to pursue new trade deals, far steeper levies took effect Aug. 7, raising U.S. tariffs on dozens of countries’ exports to between 10 and 50 percent. Economists warn the measures may weigh on consumer prices and manufacturing supply chains in the months ahead.
Mr. Trump has described the trade deficit as a national emergency and claimed his policies have cut it in half. Economists, however, caution that while the deficit often narrows in downturns, it tends to widen when the U.S. economy is strong, and Americans can afford to buy more foreign goods.
Year-to-date, the goods and services deficit is up 30.9 percent from the same period in 2024, according to Commerce Department data. Imports have increased 10.9 percent while exports are up 5.5 percent.
The Commerce Department will release the August trade data on October 7.
