Demand for gold stockpiling before tariff imposition…U.S. July trade deficit up 32.5%↑

The U.S. trade balance in July was found to have worsened sharply compared with the previous month. The trade deficit surged as imports of gold and capital goods increased.

On the 4th (local time), according to the New York Times (NYT) and others, the U.S. Department of Commerce announced that July imports of goods and services were $358 billion (about 497 trillion won), up 5.9% from the previous month, and exports were $280.5 billion (about 391 trillion won), up 0.3%. The trade deficit recorded $78.3 billion, an increase of 32.5% from the previous month.

In particular, a surge in gold imports affected the overall increase in imports. It was analyzed that demand to stockpile before high tariffs were imposed on Swiss gold drove this. Accordingly, the U.S. trade deficit with Switzerland increased by $7.6 billion (about 10.58 trillion won) from the previous month.

Auto imports fell due to the impact of a 25% tariff imposed on foreign-made vehicles. Pharmaceutical imports also fell slightly in July after several months of pre-stocking ahead of tariffs.

Imports of AI-related items such as computers and semiconductors are also reported to remain high.

The effects of reciprocal tariffs agreed through negotiations with countries around the world have not yet been reflected, because the reciprocal tariffs only began to take effect on the 7th of last month.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com