The U.S. trade deficit in July widened to its largest since March 2025, government data showed Thursday, as imports climbed on the back of the booming AI tech build-out.

The trade gap in the world's biggest economy stood at $88.6 billion for July -- a 24.4% increase from the month prior -- as exports of industrial supplies fell while imports of tech products jumped.

Exports dipped 2.1% to $310.7 billion, according to the Department of Commerce. This came as exports of industrial supplies like crude oil and gold declined.

Imports rose 2.8% to $399.3 billion, bolstered by computers, computer accessories and semiconductors.

U.S. trade has seen wide fluctuations since last year as President Donald Trump imposed broad tariffs on goods from both allies and competitors.

Businesses have scrambled to step up imports before new waves of duties kicked in. Since the U.S. Supreme Court struck down a swath of Trump's global tariffs in February, firms have also been rushing to secure refunds.

Also weighing on U.S. trade is fallout from the Middle East war, with Iran largely blocking off the Strait of Hormuz -- a key waterway for global energy transit.

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