US Trade Deficit Widens to 14-Month High

The Commerce Department reported that imports surged to a record while exports declined, widening the gap far beyond economists’ forecasts.

Capital goods imports were the main driver, reflecting strong business investment but also the increasing reliance on foreign-made equipment.

The deficit threatens to undercut the Trump administration’s goal of narrowing the trade gap through tariffs.

Economists warned that continued export underperformance could slow GDP expansion further.