The US trade deficit widened to $105.6 billion in August, rising from $92.8 billion in July. Data from the US Census Bureau showed that imports grew faster than exports during the month. While goods imports rose by $17.2 billion, exports increased by only $4.4 billion, pushing the overall gap higher.
The US goods and services trade deficit widened sharply to USD 105.6 billion in August, rising USD 12.7 billion from a revised USD 92.8 billion in July, as a stronger increase in imports more than offset the rise in exports, according to data released by the US Census Bureau and Bureau of Economic Analysis on Tuesday.
Imports rise faster than exports
August imports rose 4.3 per cent to USD 420.8 billion, while exports increased 1.4 per cent to USD 315.2 billion. The widening deficit reflected a USD 12.8 billion increase in the goods deficit to USD 136.6 billion, while the services surplus edged up by less than USD 0.1 billion to USD 31 billion.
The increase in imports was broad-based, with goods imports rising USD 17.2 billion to USD 342.2 billion. Imports of industrial supplies and materials increased USD 9.1 billion, led by a USD 3.3 billion increase in crude oil and a USD 3.1 billion rise in nonmonetary gold.
Capital goods imports also increase
Capital goods imports also increased USD 6.2 billion, including a USD 2.4 billion increase in semiconductors and a USD 1.3 billion rise in other industrial machinery. Computer accessories, however, declined USD 1.6 billion.
Goods exports rise in August
Goods exports increased USD 4.4 billion to USD 205.7 billion. Industrial supplies and materials accounted for a significant part of the increase, rising USD 6.3 billion, including higher exports of nonmonetary gold, crude oil and fuel oil. Capital goods exports rose USD 1.3 billion, supported by increases in semiconductors, computers and computer accessories.
The US services surplus remained broadly stable at USD 31 billion, with services exports rising marginally to USD 109.5 billion and imports edging up to USD 78.5 billion.
Year-to-date deficit remains lower
Despite the August widening, the cumulative trade deficit for the year through August remained lower than the corresponding period of 2025. The year-to-date goods and services deficit declined by USD 138.2 billion, or 19.9 per cent, with exports rising 11.8 per cent and imports increasing 4.4 per cent.
Three-month average shows deterioration
The three-month moving average, however, pointed to some deterioration in the recent trade balance. The average goods and services deficit for the three months ending August increased USD 9.9 billion to USD 89.9 billion. Average exports declined USD 1.6 billion to USD 314.4 billion, while average imports rose USD 8.3 billion to USD 404.3 billion.
US records largest deficits with Mexico, Vietnam
On a country basis, the US recorded its largest August deficits with Mexico at USD 27.7 billion, Vietnam at USD 24 billion, Taiwan at USD 18.3 billion and China at USD 16.4 billion. The deficit with India stood at USD 6.2 billion.