Another pop in imports caused the U.S. international trade balance to widen to $78.3 billion in July (chart). The $18.4 billion gain in goods imports was due to a renewed jump in industrial supplies, which rose 26% after five-consecutive monthly declines following an initial pull-forward at the start of the year. It is tempting to look at this development and conclude that the businesses are returning to some semblance of normal after tariff disruptions earlier this year. That explanation is made all the more compelling when seeing an import surge alongside the sharp rebound in durable goods orders in July. Yet when ... (full story)