US exports rose by 8.1 percent to 168.1 billion USA dollars in July while imports increased by 10.9 percent to 231.7 billion dollars, the department said.
Imports since June increased by $22.7 billion, while exports only increased by $12.6 billion - an 18.9 percent increase in one month.
But despite a number of high-profile trade battles and a renegotiation of the North American Free Trade Agreement with Canada and Mexico, America's trade deficits have remained stubbornly high. So his foreign and economic policies have been built around tariffs and import bans created to making it harder and more expensive to import products, and try to incentivize companies to build items in America.More news: China and India defense chiefs seek calm at Moscow meeting
Economists polled by Reuters had forecast the trade gap widening to $58 billion in July. The increase in both imports and exports is a good sign in many ways, pointing to stronger consumer spending at home and increased demand for American-made goods overseas. But the US consistently exports more services than it imports, which brought the overall trade gap down.
Although the increase in deficit was not a shock to economists, experts reportedly did not anticipate the level of deficit seen in July.
Economists on average had expected a deficit of $2.5 billion for July, according to financial markets data firm Refinitiv.More news: Trump denies report claiming he made disparaging remarks about fallen service members
In volume terms, imports rose 11.2 per cent for July, while exports gained 8.6 per cent.
Rubeela Farooqi, chief US economist at High Frequency Economics, says she expects the uncertainty to continue for a while yet.
Meanwhile, total exports rose 11.1 percent to 45.4 billion Canadian dollars, which was 2.9 billion Canadian dollars lower than the February level.More news: Police kill black man in US capital
"A strong and sustained rebound in trade flows is uncertain given a still weak global growth and demand backdrop", said Rubeela Farooqi, chief USA economist at High Frequency Economics.