US August trade deficit widens to $105.6 billion, widest since March 2025
In short
The U.S. trade deficit rose to $105.6 billion in August, up 13.7% from July and the widest monthly gap since March 2025, the Commerce Department reported Tuesday. Imports rose 4.3% while exports rose 1.4%, with gains in crude oil, gold and semiconductors. Economists said net trade will drag on third-quarter GDP growth.
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The U.S. trade deficit widened to $105.6 billion in August, a 13.7% increase from July and the largest monthly gap since March 2025, according to Commerce Department data released Tuesday. Imports rose 4.3% for the month while exports rose 1.4%, UPI reported, putting imports at $420.8 billion against exports of $315.2 billion. [ 1 , 2 , 3 ]
The reports attributed the increase to an influx of goods tied to the artificial intelligence build-out and to the timing of import tariffs. Crude oil imports rose $3.3 billion and nonmonetary gold imports rose $3.1 billion month over month, while semiconductor imports rose $2.4 billion, according to UPI and The Hill. The Hill reported that exports of crude oil rose $2 billion and semiconductor exports rose $1 billion. UPI reported that computer accessory imports fell $1.6 billion. [ 2 , 3 ]
The Hill reported that White House spokeswoman Taylor Rogers said capital goods imports, which rose $1.3 billion in August, are at a “record high” amid the artificial intelligence buildout, and called that evidence of a “manufacturing renaissance” under Trump's policies. The same report noted that manufacturing jobs have declined slightly since the president returned to office, according to Bureau of Labor Statistics data. [ 2 ]
The August data follow new tariffs Trump announced in late July, UPI reported. The Hill noted that the March 2025 deficit exceeded $130 billion just before Trump unveiled his “Liberation Day” tariffs, and said the Supreme Court struck down those levies in February, ruling he could not cite the International Emergency Economic Powers Act to tax imports. [ 2 , 3 ]
Economists cited in the coverage said the import rise will weigh on third-quarter growth. “Rising prices overstate the moves, but nonetheless net trade is set to drag on Q3 GDP growth,” said Oren Klachkin, a financial economist at Nationwide, adding that he saw it as “a sign of strong domestic demand, not economic weakness.” Goldman Sachs cut its third-quarter tracking estimate to 3.1%, down 0.3 percentage point, and the Atlanta Fed's GDPNow tracker fell to 3.7%. Capital Economics said third-quarter growth would be well below its 4.0% forecast and could be closer to 2.5%. [ 1 , 3 ]
CNBC reported that the year-to-date deficit of $138.2 billion was down nearly 20% from the same period a year earlier. [ 1 ]
Why it matters
The August gap is the widest since March 2025, the month before Trump's “Liberation Day” tariff announcement, and economists cited in the reports said the import surge will subtract from third-quarter GDP, prompting Goldman Sachs and the Atlanta Fed to trim growth-tracking estimates. The figures also put the administration's tariff policy and its effect on manufacturing and the AI build-out back into the economic debate.
Key facts
- The U.S. trade deficit was $105.6 billion in August, a 13.7% increase from July and the widest since March 2025. [ 1 , 2 , 3 ]
- Imports rose 4.3% in August and exports rose 1.4%, per UPI, with imports at $420.8 billion against exports of $315.2 billion. [ 3 ]
- The year-to-date deficit of $138.2 billion was nearly 20% below the same period a year earlier, CNBC reported. [ 1 ]
- Crude oil imports rose $3.3 billion and nonmonetary gold imports rose $3.1 billion in August, while semiconductor imports rose $2.4 billion. [ 2 , 3 ]
- A White House spokeswoman said capital goods imports, up $1.3 billion in August, are at a record high amid the artificial intelligence buildout. [ 2 ]
- Goldman Sachs cut its third-quarter GDP tracking estimate to 3.1%, down 0.3 percentage point, and the Atlanta Fed's GDPNow tracker fell to 3.7%, down 0.1 point, after the report. [ 1 , 3 ]
- Capital Economics said the rise in imports suggests third-quarter growth will be well below its 4.0% forecast and could be closer to 2.5%. [ 3 ]
- The data followed new Trump tariffs announced in late July, UPI reported, and cover the first month after those tariffs took effect. [ 2 , 3 ]
Confirmed by several sources
- The U.S. trade deficit was $105.6 billion in August, up 13.7% from July. [ 1 , 2 , 3 ]
- It was the widest monthly deficit since March 2025. [ 1 , 2 , 3 ]
- The figures were released Tuesday by the Commerce Department, with the Census Bureau and Bureau of Economic Analysis. [ 1 , 2 , 3 ]
- Imports grew faster than exports in August. [ 1 , 2 , 3 ]
- The widening came amid goods related to the artificial intelligence build-out and the effect of import tariffs. [ 1 , 2 , 3 ]
Still unclear
- The Hill reported that the Supreme Court struck down Trump's “Liberation Day” levies in February, ruling he could not cite the International Emergency Economic Powers Act to tax imports. Only one document states this, and its text is partly truncated.
- How much the deficit will weigh on third-quarter GDP growth. Estimates differ across the documents: Goldman Sachs at 3.1%, the Atlanta Fed's GDPNow at 3.7% and Capital Economics at possibly 2.5%, against its own 4.0% forecast.
- The details of the tariffs Trump announced in late July. One document gives a range of 10% to 12.5% in a truncated sentence, another says only that new tariffs were announced in late July.
What local media are saying
Timeline, local time
- CNBC reports the August trade deficit at $105.6 billion, citing Commerce Department data and noting Goldman Sachs and Atlanta Fed growth-estimate cuts. [ 1 ]
- The Hill reports the deficit topped $100 billion for the first time since March 2025 and includes a White House comment on capital goods imports. [ 2 ]
- UPI reports the deficit figure, import and export totals, and Capital Economics' assessment of third-quarter growth. [ 3 ]