US trade deficit hits record $105.6B

The US trade deficit widened sharply in August as businesses stepped up overseas purchases, particularly technology and industrial goods.

The gap between imports and exports reached $105.6 billion, up 13.7% from July. It was the widest deficit since early 2025 and came in above economists’ expectations.

A major driver was strong demand for equipment linked to the artificial intelligence boom. Imports of computers, semiconductors and telecommunications equipment increased, with semiconductor shipments alone rising by a record $2.4 billion.

Oil and other industrial supplies also added to import costs. Overall imports rose 4.3%, while exports grew 1.4%.

President Donald Trump’s “Liberation Day” tariffs failed to prevent the trade deficit from widening, despite his goal of reducing it and addressing unfair trade practices.

A larger trade gap could slow US economic growth in the third quarter because imports subtract from GDP calculations.