US trade deficit widens to $105.6 billion in August amid import surge

The United States trade deficit widened sharply to $105.6 billion in August, expanding by $12.7 billion from a revised $92.8 billion in July, according to data released by the US Census Bureau and Bureau of Economic Analysis. The monthly increase reflected a stronger growth in imports compared to exports, with imports rising 4.3 per cent to $420.8 billion while exports increased only 1.4 per cent to $315.2 billion.

The widening deficit was driven primarily by a $12.8 billion increase in the goods deficit to $136.6 billion, while the services surplus edged up marginally by less than $0.1 billion to $31 billion. Goods imports rose $17.2 billion to $342.2 billion, with industrial supplies and materials increasing $9.1 billion—led by a $3.3 billion increase in crude oil and a $3.1 billion rise in nonmonetary gold. Capital goods imports also increased $6.2 billion, including a $2.4 billion increase in semiconductors and a $1.3 billion rise in other industrial machinery, though computer accessories declined $1.6 billion.

Despite the August widening, the cumulative trade deficit through August remained below the corresponding period of 2025, with a year-to-date decline of 19.9 per cent. The US trade deficit with India stood at $6.2 billion for the month.