US trade deficit widens to $118.8B, largest since March

The US goods-trade deficit surged 17.2% to $118.8B in July, far exceeding the $100.5B forecast, driven by a 3.7% import jump led by capital goods—the largest surge since 1993—while exports fell 2.9%. This widens the drag on Q3 GDP growth and suggests weakening US economic momentum, pressuring USD as growth expectations repriced lower amid hawkish Fed expectations.