The US trade deficit widened sharply in August as imports of crude oil, semiconductors, and other capital goods surged, pushing the gap between imports and exports to its highest level since March 2025. The goods and services deficit rose 13.7% from July to USD 105.6 billion, according to data the US Commerce Department released on Tuesday (October 6, 2026). The figure was also higher than the roughly USD 102 billion economists had expected.
The increase came despite the Trump administration’s tariff policies, which have aimed in part to reduce America’s reliance on imported goods. Instead, strong domestic demand and business investment continued to support overseas purchases.
US imports climbed 4.3% to a record USD 420.8 billion in August, while exports rose a more modest 1.4% to USD 315.2 billion. The goods trade deficit increased by USD 12.8 billion to USD 136.6 billion, while the services surplus remained broadly stable at USD 31 billion.
Industrial supplies and materials accounted for much of the increase. Imports in the category rose by USD 9.1 billion, with crude oil and other petroleum products contributing to the jump. Crude oil imports alone rose by about USD 2 billion, according to government data.
Another major contributor was capital goods, which include computers, semiconductors and other equipment used by businesses. Capital goods imports increased by USD 6.2 billion, with semiconductor imports rising sharply.
The increase reflects continued investment in artificial intelligence and data-center infrastructure. US businesses have been importing large amounts of advanced computing equipment to meet demand linked to the AI buildout, adding to the country's dependence on overseas suppliers.
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The wider trade deficit could become a drag on third-quarter economic growth since imports are subtracted from GDP calculations when they exceed exports. Economists estimated that trade could reduce third-quarter GDP growth by as much as 2.5 percentage points, although strong consumer and business spending may partly offset the impact.
Despite the sharp monthly increase, the broader picture is less negative. The US goods and services deficit for the first eight months of 2026 was about 20% lower than in the same period in 2025, as exports have grown faster than imports year-to-date.