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Import growth worsens the trade balance

The U.S. trade deficit was recorded at $105.6 billion in August. According to data released Tuesday by the U.S. Commerce Department, the deficit rose 13.7% from July and came in above the market forecast of $102 billion.

Imports increased 4.3% over the same period. The widening gap was driven by higher shipments linked to artificial intelligence infrastructure investment, as well as volatility tied to import tariffs, according to the data.

Highest level since last year’s pre-tariff period

The August deficit was the largest monthly shortfall since the record level seen in March 2025. That March reading came just before Donald Trump imposed reciprocal tariffs on U.S. trading partners.

The data pointed to a sharp monthly deterioration in the external trade balance. In particular, the flow of equipment and related goods tied to AI investment lifted imports, making it the standout factor in the August figure.

Year-to-date deficit remains below last year

Although the monthly deficit rose sharply, the cumulative deficit since the start of the year stood at $138.2 billion, about 20% lower than in the same period last year. So despite August's strong increase, the broader-year picture still showed a smaller deficit than in 2024.

Key figures

  • August trade deficit: $105.6 billion
  • Increase from July: 13.7%
  • Monthly import growth: 4.3%
  • Market forecast: $102 billion

The stronger-than-expected reading was among the closely watched indicators for markets on the external balance. Even so, the smaller deficit so far this year compared with last year offered a different picture over the broader period.

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