The Commerce Department said the August trade gap widened 13.7 percent to $105.6 billion, the largest in 17 months, as imports rose 4.3 percent to a record $420.8 billion.
The US trade deficit widened more than expected in August as imports rose to a record, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday.
The shortfall increased 13.7 percent to $105.6 billion, the largest since March 2025. Economists polled by Reuters had expected $102.0 billion. The deficit was $79.8 billion when Donald Trump was elected to a second term in November 2024, Reuters reported.
Imports rose 4.3 percent to $420.8 billion. Goods imports rose 5.3 percent to $342.2 billion, helped by businesses rebuilding inventories that had been drawn down for five straight quarters. Industrial supplies and materials, which include petroleum, rose by $9.1 billion. Exports rose 1.4 percent to $315.2 billion.
The United States had record goods trade shortfalls with Mexico, Vietnam and Malaysia, and continued deficits with Taiwan, China, the European Union, South Korea and India. The shortfall with Canada jumped $4.1 billion. Reuters said strong Canadian import growth likely reflected businesses bringing orders forward to avoid higher tariffs.
The report covers August, not September. Reuters said the figures keep trade on track to subtract from third-quarter growth.