Why did the US trade deficit widen in August?

The deficit widened because imports rose sharply as strong consumer and business demand continued. Businesses relied on foreign goods to meet demand, including demand linked to equipment spending related to AI.

How much could the US trade deficit reduce third-quarter GDP growth?

Economists estimate that trade could reduce third-quarter GDP growth by as much as 2.5 percentage points because imports are rising faster than exports. Consumer spending is expected to offset part of that drag, while overall growth estimates remain mostly above a 3.0 percent annualized rate.

Did President Donald Trump’s tariffs reduce US imports in August?

No. Imports increased 4.3 percent to $420.8 billion in August, and goods imports rose 5.3 percent to $342.2 billion despite Trump’s tariffs, which he has said are intended to shrink the trade deficit.

US trade deficit widens in August amid strong imports

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Summary

The U.S. trade deficit widened in August as imports surged amid robust domestic demand. The trade shortfall increased 13.7 percent to $105.6 billion, exceeding economists’ forecast of $102.0 billion. Imports rose despite President Donald Trump’s tariffs, while trade remained on track to reduce third-quarter economic growth.

Key Facts

Imports increased 4.3 percent to $420.8 billion in August, including a 5.3 percent rise in goods imports to $342.2 billion.
Exports rose 1.4 percent to $315.2 billion, while goods exports increased 2.2 percent to $205.7 billion.
Trade has subtracted from gross domestic product for three consecutive quarters, and economists estimate it could reduce third-quarter GDP growth by as much as 2.5 percentage points.
Economists expect third-quarter growth to exceed a 3.0 percent annualized rate, with consumer spending offsetting the drag from imports.
The economy grew at a 2.2 percent pace in the second quarter.

By Reuters

Published Oct 6, 2026 10:41 pm KST

Shipping containers at the Port of Miami in Florida, April 9, 2025 / AFP-Yonhap

WASHINGTON — The U.S. trade deficit widened more than expected in August, driven by a surge in imports of goods amid robust domestic demand, keeping trade on track to again subtract from economic growth in the third quarter.

The trade shortfall increased 13.7 percent to $105.6 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday. Economists polled by Reuters had forecast the deficit would be $102.0 billion.

The deterioration was flagged by data last week that showed an import-driven surge in the goods trade deficit in August.

Domestic demand increased at its fastest pace in more than three and a half years in the second quarter, reflecting robust consumer spending and business spending on equipment, mostly related to AI. The trend appears to have spilled over into the third quarter, with data last month showing strong consumer spending in August as well as orders and shipments of nondefense capital goods, excluding aircraft.

But businesses are relying on imports to meet demand. The increase in imports also has occurred despite President Donald Trump's aggressive tariffs, which he has argued are meant to shrink the trade deficit.

Imports increased 4.3 percent to $420.8 billion in August. Goods imports jumped 5.3 percent to $342.2 billion. Exports rose 1.4 percent to $315.2 billion. Goods exports increased 2.2 percent to $205.7 billion.

Trade has subtracted from gross domestic product for three straight quarters, and economists estimate it could cut as much as 2.5 percentage points from GDP in the third quarter.

Growth estimates for the July-September quarter are mostly above a 3.0 percent annualized rate, with consumer spending expected to offset the drag from imports. The economy grew at a 2.2 percent pace in the second quarter.

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