WASHINGTON (Reuters) - The U.S. goods trade deficit widened sharply in July as exports of agricultural products tumbled, suggesting trade will likely be a drag on economic growth in the third quarter.
The Commerce Department said on Tuesday the goods trade gap surged 6.3 percent to $72.2 billion last month. Exports of goods dropped 1.7 percent to $140.0 billion, weighed down by a 6.7 percent plunge in shipments of food, feeds and beverages.
That likely reflected a continued reversal of soybean exports after farmers front-loaded shipments of the crop in April and May to China before Beijing’s retaliatory tariffs came into effect in early July. The United States and China are embroiled in a trade war marked by tit-for-tat tariffs.
Last month, there were also decreases in exports of capital and consumer goods, though motor vehicle exports rose. Imports of goods increased 0.9 percent to $212.2 billion in July, boosted by imports of food, industrial supplies and capital goods.
