US Trade Deficit Widens 13.7% to $105.6 Billion In August

The US trade deficit widened 13.7% to $105.6 billion in August, exceeding economists’ forecast of $102 billion, according to data from the Commerce Department’s Bureau of Economic Analysis and Census Bureau.

Strong domestic demand drove imports higher, with goods and services imports rising 4.3% to $420.8 billion. The increase came despite President Donald Trump’s tariff policies, as businesses continued relying on foreign goods to meet demand.

The wider deficit puts trade on track to weigh on GDP for a third consecutive quarter, although economists still expect overall growth to remain above a 3% annualized rate. The August gap was the largest since the record deficit reported in 2025 before Trump announced reciprocal tariffs.

Related Tweet:

Record imports push US trade balance deep into the red in August https://t.co/qTPSuh0TW4

— The Straits Times (@straits_times) October 6, 2026

Also Read:

September Jobs Report Shows Sharp US Labor Market Slowdown

Despite weak payroll growth, the household survey showed employment rising by 406,000. Labor-force participation increased to 61.8%.

tippinsightsTIPP Staff