U.S. Trade Deficit Widens to $105.6 Billion in August as Imports Outpace Exports

The U.S. trade deficit in goods and services widened to $105.6 billion in August, the Census Bureau and the Bureau of Economic Analysis reported on October 6. That was up $12.7 billion from a revised $92.8 billion in July. Imports rose far faster than exports during the month.

Imports Climb Faster Than Exports

August exports reached $315.2 billion, which was $4.5 billion higher than in July. Imports rose $17.2 billion to $420.8 billion.

The goods deficit increased $12.8 billion to $136.6 billion. The services surplus was essentially unchanged at $31.0 billion.

What Drove the Change

Exports of goods increased $4.4 billion to $205.7 billion. Gains came mainly in industrial supplies and materials, which rose $6.3 billion. Nonmonetary gold, crude oil and fuel oil all rose. Capital goods exports also increased, led by semiconductors and computers.

Consumer goods exports fell $2.2 billion, with pharmaceutical preparations down $2.4 billion. Civilian aircraft exports declined by $1.0 billion.

Imports of goods rose $17.2 billion to $342.2 billion. Industrial supplies and materials were up $9.1 billion, led by increases in crude oil and nonmonetary gold. Capital goods imports rose $6.2 billion, with semiconductors up $2.4 billion.

Trade Partners

The August figures showed the largest goods deficits with Mexico at $27.7 billion, Vietnam at $24.0 billion, Taiwan at $18.3 billion and China at $16.4 billion. The U.S. recorded surpluses with the Netherlands at $7.7 billion, South and Central America at $5.6 billion and the United Kingdom at $3.6 billion.

The deficit with Canada grew by $4.1 billion to $7.1 billion, as exports edged up to $29.9 billion while imports rose to $37.1 billion.

Year-to-Date and Longer-Term Picture

Despite the monthly increase, the deficit remains lower than last year. For the first eight months of 2026, the combined goods and services deficit was down $138.2 billion, or 19.9%, from the same period in 2025. Exports were up $267.7 billion, or 11.8%, while imports rose $129.5 billion, or 4.4%.

The three-month average deficit increased $9.9 billion to $89.9 billion for the period ending in August. Average exports slipped to $314.4 billion, while average imports rose to $404.3 billion.

The figures are seasonally adjusted and not adjusted for price changes. The next trade release, covering September, is scheduled for November 4.