Up 13.7% from prior month to $105.6 billion

Capital goods imports rise $6.2 billion on AI investment

Deficit with Canada surges

An American flag flies near shipping cranes at the Port of Los Angeles in Los Angeles, California, on May 28 (local time). [Getty Images]
An American flag flies near shipping cranes at the Port of Los Angeles in Los Angeles, California, on May 28 (local time). [Getty Images]

The US trade deficit widened in August as imports climbed to an all-time high, driven by a surge in capital goods purchases tied to AI infrastructure investment, including semiconductors and industrial machinery.

The Commerce Department said Tuesday (local time) that the goods and services trade deficit rose 13.7 percent from the prior month to $105.6 billion in August — the largest since March 2025, just before President Donald Trump announced reciprocal tariffs on countries worldwide on what he called "Liberation Day." The figure also exceeded the consensus forecast of $102 billion compiled by Dow Jones.

Exports rose 1.4 percent to $315.2 billion, led by industrial supplies including crude oil and nonmonetary gold, but the gain was not enough to offset the rise in imports.

Imports climbed 4.2 percent to $420.8 billion, setting a record. Industrial supplies imports rose $9.1 billion, while capital goods imports — led by semiconductors and other industrial machinery — increased $6.2 billion. Analysts attributed the rise to growing demand for chips and equipment as US companies have ramped up AI-related infrastructure investment.

By country, the largest trade deficit was with Mexico, followed by Vietnam, Taiwan, China, the EU, South Korea, Canada and India.

The deficit with Canada widened particularly sharply, from $4.1 billion the previous month to $7.1 billion. Companies rushed shipments ahead of Aug. 22, when the US government imposed an additional 50 percent tariff on some Canadian products after trade negotiations between the two countries stalled.

Trade deficits with Mexico and Vietnam also hit record highs.


yckim6452@heraldcorp.com