US trade deficit jumped above $100 billion in August

The US trade deficit jumped to more than $100 billion in August as importers wrestled with a new round of President Trump's tariffs and continued to bring in billions of dollars' worth of components for AI data centers.

The total gap: $105.6 billion, a 13.8% increase from July's revised $92.8 billion deficit, the highest level since early 2025, when importers stocked up ahead of Trump's "Liberation Day" and a later four-month surge in imports that pushed average monthly trade deficits north of $120 billion.

Imports rose in August by 4.3%, compared with a 1.4% increase in exports. The US brought in $420.8 billion in total imports in August against $315.2 billion in exports.

In an analysis, Capital Economics said the "sharp rise in imports suggests third quarter GDP growth will be well below our current forecast of 4.0%," suggesting that the final annualized figure could be closer to 2.5%."

"The relatively broad-based rise in goods imports mean net trade was still a drag overall," the group added.

The new data released Tuesday by the Commerce Department's Bureau of Economic Analysis showed yet another pivot in global trade, covering the first month after a new phase of Trump's tariffs took effect and the month when trade talks with Canada collapsed .

Demand for artificial intelligence was also evident, with tech companies importing goods to drive the ongoing data center build-out.

The August data showed semiconductor imports increased by $2.4 billion, even as computer accessory imports decreased by $1.6 billion, with overall AI-related imports little changed from July but still elevated.

But a more significant driver of the increase in imports appeared to be industrial supplies. Imports of crude oil jumped by $3.3 billion, and imports of nonmonetary gold increased by $3.1 billion.

It was another surge in goods imports that drove the headline deficit figure, with a goods deficit of $136.57 billion, while the US surplus in service imports stayed essentially flat.

This latest data came after Trump levied new tariffs in late July , including a 10% tariff on top allies like the European Union and a 12.5% tariff on other nations, including China.

The country-by-country breakdown underscored the persistent multibillion-dollar trade deficits that the US runs with a range of countries, from Mexico to Vietnam to the EU.

The largest trade deficit was with Mexico, with a gap of $27.7 billion in August. The deficit with Canada increased by $4.1 billion to $7.1 billion in the month when trade tensions between the US and its northern neighbor escalated.