US Trade Deficit at 17-Month High

The US trade deficit grew by 13.7% in August, reaching $105.6 billion. This is the highest level since March 2025. The deficit increased despite tariffs imposed by the Trump administration, one of whose goals was to reduce imports.

In August, the US purchased a record $420.8 billion worth of goods and services from abroad, 4.3% more than the previous month. Imports of oil, semiconductors, industrial materials and manufacturing equipment rose particularly sharply. Imports of production equipment and other capital goods alone reached $146.4 billion. Notably, the increase is linked to the construction of data centers and other AI-related projects.

US exports totaled $315.2 billion in August, up 1.4% compared to July. Due to the widening trade deficit, Goldman Sachs lowered its forecast for US third-quarter economic growth from 3.4% to 3.1%.

Source: Reuters