U.S. trade deficit widens to 17-month high of $105.6 billion as imports hit record

SentiSense · Published Oct 6, 2026, 11:01 AM ET · Updated Oct 7, 2026, 8:14 AM ET

The U.S. goods and services trade deficit widened to $105.6 billion in August, up $12.7 billion from a revised $92.8 billion in July, according to the Bureau of Economic Analysis and Census Bureau. Imports reached a record $420.8 billion and the deficit was a 17-month high. Czechia's August goods deficit was wider than a year earlier but narrower than in July.

The U.S. goods and services trade deficit was $105.6 billion in August, up $12.7 billion from a revised $92.8 billion in July, according to the Bureau of Economic Analysis and Census Bureau release on Oct 6. It was a 17-month high rather than a record: the New York Times described it as the largest monthly total since before the April 2025 global tariffs. Imports were the record, at $420.8 billion, while exports rose to $315.2 billion. Reuters said economists polled had forecast a deficit of $102.0 billion.

The import rise was led by petroleum, gold and chips used for artificial intelligence. Per the BEA, imports of industrial supplies rose $9.1 billion, including crude oil and nonmonetary gold, and capital goods imports rose $6.2 billion, including semiconductors. The tariff backdrop is mixed. The New York Times reported that the Supreme Court struck down many of the tariffs in February and that the administration has put a lower tariff of 10% to 12.5% on many products. Reuters quoted Christopher Rupkey of FWDBONDS saying tariffs have done nothing to reduce reliance on imported goods.

Longer-run comparisons point in different directions. The BEA said that year-to-date the goods and services deficit decreased $138.2 billion, or 19.9 percent, from the same period in 2025. Market commentator Charlie Bilello, in an X post, framed it differently for goods alone: a $2.06 trillion goods deficit over the last 20 months versus $1.92 trillion in the 20 months prior. That is his framing, and it covers goods only.

Czechia, which is not in the euro area and reports in koruna, posted a goods trade deficit of CZK 5.3 bn in August, which was CZK 5.6 bn worse year-on-year, per the Czech Statistical Office. It was narrower than July's deficit, and imports rose 10.2% year-on-year to CZK 377.2 bn while exports rose 8.5% to CZK 371.9 bn.

What to watch: the next BEA release on Nov 4, whether import strength tied to AI capital goods persists, and how trade subtracts from third-quarter GDP, which Reuters said economists estimate could be up to 2.5 percentage points.