The U.S. trade deficit in goods and services expanded by 24.4% in July from the previous month to $88.6 billion, the highest level since early 2025, data from the Commerce Department showed on Thursday. Imports rose by 2.8% to $399.3 billion, while exports fell by 2.1% to $310.7 billion. The increase in imports was mainly concentrated in capital goods, with a notable rise in products related to AI infrastructure construction, such as computers, computer accessories, and semiconductors. This indicates that U.S. companies' continued scaling up of AI investments is driving demand for overseas technology hardware. The widening trade deficit is expected to put pressure on U.S. economic growth in the third quarter.