U.S. Exports Surge, Shrink Trade Gap
By wchung | 28 Mar, 2026

U.S. exports rose 3.6 percent in July to $178 billion on the strength of telecommunications equipment, civilian aircraft, autos and industrial engines. Exports of capital goods and autos hit a new record.

The export surge, combined with a 0.2 percent drop in imports to $222.8 billion from $223.4 billion in the prior month, shrank the trade deficit 13.1 percent, the most since February 2009, to $44.8 billion. The June deficit was revised to $51.6 billion, according to Commerce Department figures.

The stubborn trade deficit with China rose slightly from $26.7 billion in June to $27 billion in July, the highest since last September. The deficit with Canada increased to $3.2 billion from $2.8 billion. The deficit with the European Union shrank while exports to South and Central America hit new records.

The demand for imported crude oil dipped as the passed $100 a barrel in July for a fourth month. The average price of imported crude oil was $104.27, compared with $106 in June. The U.S. imported 350,657 barrels in July, the least since April.

Imports in July reflected $22.3 billion in shipments of auto parts, the most since February 2008, as parts deliveries from Japan recover after the March earthquake and tsunami. Imports of autos and autu parts are only half the level before the disaster, according to Richard Steinke, executive director of the Port of Long Beach.

The surprise boost in exports is causing Barclays Capital Research to raise its estimate for third-quarter growth to 2.5 percent from the earlier 2 percent projection.