The US trade gap widened 13.7 per cent in August, with imports rising nearly four times faster than exports. The deficit, however, remains sharply lower year-to-date than in 2025.
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, according to data released by the US Census Bureau and Bureau of Economic Analysis (BEA) on Tuesday.
The August deficit was larger than expected and marked a 13.7 per cent month-on-month increase, as imports surged while exports recorded a more modest rise.
The widening trade gap was driven primarily by goods trade. The goods deficit increased by $12.8 billion to $136.6 billion, while the services surplus edged up by less than $0.1 billion to $31 billion.
Imports jump $17.2 billion
US exports rose $4.5 billion to $315.2 billion in August, while imports jumped $17.2 billion to $420.8 billion.
Imports therefore increased substantially faster than exports during the month, pushing the overall trade deficit higher.
The latest figures highlight a renewed widening in the US trade gap even as the country’s cumulative trade deficit remains considerably lower than last year. Year-to-date deficit down nearly 20 per cent.
Despite the August deterioration, the US trade balance has improved significantly on a year-to-date basis.
More from BusinessThe goods and services deficit for the year through August was $138.2 billion, or 19.9 per cent, lower than during the same period in 2025.
Over the same period, exports increased by $267.7 billion, or 11.8 per cent, while imports rose by $129.5 billion, or 4.4 per cent.
That means the improvement in the cumulative trade balance has been driven by a much stronger increase in exports compared with imports. The three-month average trade gap also widens.
The deterioration was also visible in the three-month moving average. For the three months ending in August, the average goods and services deficit increased by $9.9 billion to $89.9 billion.
Average exports declined by $1.6 billion to $314.4 billion, while average imports increased by $8.3 billion to $404.3 billion.
Compared with the same three-month period in 2025, the average trade deficit was $25.4 billion higher. Average exports were up $31.1 billion year-on-year, but average imports rose by a much larger $56.5 billion.
