U.S. Trade Deficit Widens to $105.6 Billion as Imports Hit Record

The U.S. trade deficit widened for a second month in August as imports climbed to a record $420.8 billion, propelled by capital goods and industrial supplies, while exports posted a smaller increase.

The goods and services deficit increased 13.7% to $105.6 billion, up $12.7 billion from a revised $92.8 billion in July, the Census Bureau and Bureau of Economic Analysis reported Tuesday. Exports increased $4.5 billion, or 1.4%, to $315.2 billion, while imports jumped $17.2 billion, or 4.3%, to $420.8 billion.

The August figures extend the sharp reversal in U.S. trade flows since June, with imports rising much faster than exports and record capital-goods purchases continuing to drive the deterioration. The three-month average deficit increased $9.9 billion to $89.9 billion. At the same time, the year-to-date deficit remains 19.9% below the comparable 2025 level, reflecting the unusually large trade imbalance early last year.

The goods deficit increased $12.8 billion to $136.6 billion, while the services surplus was essentially unchanged at $31.0 billion. Goods imports increased $17.2 billion to $342.2 billion. Industrial supplies and materials rose $9.1 billion, including a $3.3 billion increase in crude oil and $3.1 billion in nonmonetary gold. Capital-goods imports increased another $6.2 billion, led by a $2.4 billion rise in semiconductors and $1.3 billion in other industrial machinery.

Census said capital-goods imports reached a record $146.4 billion, while inflation-adjusted capital-goods imports also reached a record $120.0 billion. Overall goods-and-services imports were likewise the highest on record.

Exports provided only a partial offset. Goods exports increased $4.4 billion to $205.7 billion, led by industrial supplies, including nonmonetary gold, crude oil and fuel oil. Capital-goods exports increased $1.3 billion, with higher semiconductor, computer and computer-accessory shipments partly offset by a $1.0 billion decline in civilian aircraft.

The country data showed further shifts in U.S. sourcing. Census reported record August deficits with Mexico ($27.0 billion), Vietnam ($25.0 billion) and Malaysia ($5.5 billion) on its unadjusted historical-comparison basis. Imports from Mexico reached a record $60.6 billion, while imports from Vietnam and Malaysia also set records.

On the seasonally adjusted basis used in the main country tables, the United States recorded deficits of $27.7 billion with Mexico, $24.0 billion with Vietnam, $18.3 billion with Taiwan and $16.4 billion with China. The Canada deficit more than doubled, increasing $4.1 billion to $7.1 billion.

The real goods deficit increased 8.2% to $114.7 billion, indicating that the deterioration was not simply a price effect. Real imports rose 4.1%, compared with a 1.3% increase in real exports.

The new report also significantly revised July. July goods imports were revised upward by $4.4 billion, pushing the overall July deficit to $92.8 billion, compared with the $88.6 billion initially reported last month.

Through August, the U.S. deficit was $138.2 billion, or 19.9%, below the same period of 2025. Exports increased 11.8%, while imports rose 4.4%. The next report, covering September, is scheduled for Nov. 4.

Sources: Census Bureau — Current Trade Release | Full FT900 Report | Census Press Highlights