The US trade deficit widened sharply in August to $105.6 billion, the largest since early 2025, Commerce Department data showed Tuesday. The gap in goods and services trade grew 13.7% from the prior month, exceeding economists' median projection of a $102.1 billion shortfall from a Bloomberg survey. Monthly trade figures, unadjusted for inflation, have swung widely since early 2025 due to US tariffs and war-driven volatility in crude oil prices. Supply-chain challenges and reliance on imported technology for artificial intelligence investment also contributed.
The August deficit will likely weigh on third-quarter gross domestic product. Before the latest figures, the Federal Reserve Bank of Atlanta's GDPNow forecast indicated net exports will subtract 2.59 percentage points from GDP calculation. The nominal value of imports of goods and services increased 4.3% while exports rose 1.4%. On an inflation-adjusted basis, the merchandise-trade deficit widened to $114.7 billion, also the largest shortfall since March 2025.
Imports of capital goods — including computers, semiconductors, and telecommunications equipment — rose $6.2 billion from a month earlier. Semiconductor imports jumped by a record $2.4 billion. Industrial supplies, including oil and petroleum products, saw import increases of $9.1 billion. By country, the US merchandise-trade deficit with Canada widened to its largest since the start of 2025 as both countries accelerated shipments to avoid tariffs after trade talks fell apart in August.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing