U.S. August trade gap widens as imports outpace exports

Imports outpaced exports

The US goods-and-services trade deficit widened by US$12.7 billion to US$105.6 billion in August, the BEA reported. July’s gap was revised to US$92.8 billion.

Exports increased US$4.5 billion to US$315.2 billion, but imports rose US$17.2 billion to US$420.8 billion. The goods deficit increased US$12.8 billion to US$136.6 billion. The services surplus was US$31 billion, with a change of less than US$0.1 billion.

That monthly deterioration differs from the year-to-date comparison. The deficit over the year to date was US$138.2 billion, or 19.9 per cent, smaller than in the same period of 2025. Exports increased US$267.7 billion, or 11.8 per cent, while imports rose US$129.5 billion, or 4.4 per cent.

The three-month average deficit rose US$9.9 billion to US$89.9 billion, with average exports down US$1.6 billion to US$314.4 billion and imports up US$8.3 billion to US$404.3 billion. Against a year earlier, the average deficit was US$25.4 billion larger; exports were US$31.1 billion higher and imports US$56.5 billion higher. These different windows are necessary to interpret the direction of the change.

Goods explain the main movement

Goods exports increased US$4.4 billion to US$205.7 billion. Industrial supplies rose US$6.3 billion, including US$2.3 billion more gold, US$2 billion more crude oil and US$1.2 billion more fuel oil. Capital goods rose US$1.3 billion, with semiconductors up US$1 billion and computers and accessories each up US$0.9 billion, while aircraft fell US$1 billion.

Consumer goods exports fell US$2.2 billion, including a US$2.4 billion decline in pharmaceuticals. The category movements show why the overall export increase cannot be described as uniform across goods.

Goods imports rose US$17.2 billion to US$342.2 billion. Industrial supplies increased US$9.1 billion, including crude oil up US$3.3 billion and gold up US$3.1 billion. Capital goods rose US$6.2 billion, with semiconductors up US$2.4 billion and machinery up US$1.3 billion, while computer accessories fell US$1.6 billion.

Services and price adjustment

Services exports increased by less than US$0.1 billion to US$109.5 billion. Intellectual-property charges rose US$0.2 billion and other business services US$0.1 billion, while travel fell US$0.2 billion and financial services US$0.1 billion. Services imports rose by less than US$0.1 billion to US$78.5 billion, with transport up US$0.4 billion, intellectual-property charges down US$0.2 billion and travel down US$0.1 billion.

On an inflation-adjusted Census basis in 2017 dollars, the goods deficit rose US$8.7 billion, or 8.2 per cent, to US$114.7 billion. The nominal increase was 11.1 per cent. Real exports rose US$1.9 billion, or 1.3 per cent, to US$153 billion; real imports rose US$10.7 billion, or 4.1 per cent, to US$267.7 billion. The corresponding nominal growth rates were 2.1 and 5.4 per cent.

Real and nominal changes differ because the real series adjusts for prices. The real goods figures also carry a separately identified Census basis, while the headline goods-and-services figures use the seasonally adjusted balance-of-payments account.

Partners and revised history

Reported bilateral goods deficits included Mexico at US$27.7 billion, Vietnam US$24 billion, Taiwan US$18.3 billion, China US$16.4 billion and the EU US$11 billion. Canada’s deficit rose US$4.1 billion to US$7.1 billion, with exports up US$0.5 billion to US$29.9 billion and imports up US$4.6 billion to US$37.1 billion.

Singapore shifted from a US$1.9 billion surplus to a US$0.3 billion deficit. Ireland’s deficit declined US$1.5 billion to US$2.5 billion. These partner results describe parts of goods trade, not the entire services-inclusive balance.

July goods imports were revised up US$4.4 billion and exports US$0.2 billion; services exports and imports were each revised down US$0.2 billion. September trade was scheduled for release on November 4.

The trade deficit records imports exceeding exports in this account. It is neither the fiscal deficit nor a complete assessment of the benefits and costs of international trade.