July trade deficit widened sharply to from..>

US DATA: July trade deficit widened sharply to -$50.1b from -$45.7b 

in June, a slightly wider gap than -$50.0b exp. The census goods gap was 

revised to -$72.0b from -$72.2b in the advance estimate, but still much 

wider than -$67.9b in June. 

- The trade gaps with China and the EU both hit record high levels, 

ammunition for those in favor of further tariffs. The gap with Canada 

also widened, while the gap with Mexico narrowed, but both were wider 

than a year ago.

- Exports fell in July on declines in foods, feeds, and beverages 

(-$0.9b), capital goods ex autos (-$0.9b), and consumer goods (-$0.4), 

offset by industrial supplies (+$0.2) and autos (+$0.2b).

- Imports increased on capital goods ex autos (+$0.7b), industrial 

supplies (+$0.5b), and autos (+$0.5b), but consumer goods imports fell 

by $0.8b on a sharp drop in pharmaceutical preps.