The US trade deficit jumped in July as AI-driven demand for chips and computers pulled in imports, a bad sign for Trump's tariff strategy and a warning that new chip tariffs may be coming.

• The overall US trade gap widened sharply to its biggest since March 2025, as exports fell and tech imports surged.
• The deficit with Taiwan, the center of global chipmaking, hit a record, and gaps with Mexico, Vietnam, Thailand, South Korea and Malaysia also set records.
• Computers, computer parts and semiconductors drove the import jump, while oil and gold exports dropped.
• Commerce Secretary Howard Lutnick said Washington is preparing targeted tariffs on semiconductors, with companies that build in the US exempt.
• Trade fights are spreading: Trump slapped 50% tariffs on billions in Canadian goods, and Iran's blockade of the Strait of Hormuz is disrupting energy and fertilizer shipping.

Outlook: New chip tariffs and investigations into 16 trading partners, including Taiwan, China and the EU, could hit electronics imports in the coming months.