In July, the US trade deficit widened significantly, reaching $88.6 billion, the largest figure since early 2025. This increase of 24% is largely attributed to a surge in imports related to the AI boom, particularly technology equipment. The trade gap with Asia also expanded, with Vietnam being a notable contributor. This sharp rise contrasts with the previous three-month decline in US exports. Experts highlight that continued AI-driven demand is expected to keep the trade deficit under scrutiny as it balloons to the highest levels seen in over a year.