US trade deficit widens to $105.6 billion in August as imports jump

07/10/2026 07:52 AST

The US goods and services trade deficit widened sharply to $105.6 billion in August, rising $12.7 billion from a revised $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.

August imports rose 4.3 per cent to $420.8 billion, while exports increased 1.4 per cent to $315.2 billion. The widening deficit reflected a $12.8 billion increase in the goods deficit to $136.6 billion, while the services surplus edged up by less than $0.1 billion to $31 billion.

The increase in imports was broad-based, with goods imports rising $17.2 billion to $342.2 billion. Imports of industrial supplies and materials increased $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. Computer accessories, however, declined $1.6 billion.

Goods exports increased $4.4 billion to $205.7 billion. Industrial supplies and materials accounted for a significant part of the increase, rising $6.3 billion, including higher exports of nonmonetary gold, crude oil and fuel oil. Capital goods exports rose $1.3 billion, supported by increases in semiconductors, computers and computer accessories.

The US services surplus remained broadly stable at $31 billion, with services exports rising marginally to $109.5 billion and imports edging up to $78.5 billion.

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 $138.2 billion, or 19.9 per cent, with exports rising 11.8 per cent and imports increasing 4.4 per cent.

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 $9.9 billion to $89.9 billion. Average exports declined $1.6 billion to $314.4 billion, while average imports rose $8.3 billion to $404.3 billion.

On a country basis, the US recorded its largest August deficits with Mexico at $27.7 billion, Vietnam at $24 billion, Taiwan at $18.3 billion and China at $16.4 billion. The deficit with India stood at $6.2 billion.

ANI