Fruit loop runs, dividing with America First (7)
I believe the answer is:
apricot
'fruit' is the definition.
(type of fruit)
'loop runs dividing with america first' is the wordplay.
'loop' becomes 'picot' (small loop or loops in embroidery or lace).
'runs' becomes 'r' (cricket abbreviation).
'dividing' is an insertion indicator (inserted letters divide the word).
'with' means one lot of letters go next to another.
'america first' becomes 'a' (1st letter of 'america').
'picot' enclosing 'r' is 'pricot'.
'pricot' after 'a' is 'APRICOT'.
(Other definitions for apricot that I've seen before include "Orange fruit" , "Orange-coloured fruit" , "Fruit resembling a peach" , "Luscious fruit" , "Yellow fruit" .)