US trade deficit widens despite Trump's tariffs: What August data tells us

The trade shortfall rose 13.7% from the previous month to $105.6 billion, according to data released by the Commerce Department's Bureau of Economic Analysis and Census Bureau on Tuesday.

The US trade deficit widened more than expected in August despite President Donald Trump's aggressive tariff measures, as strong domestic demand pushed imports higher and kept trade on course to weigh on economic growth for a third straight quarter, Reuters reported.

The trade shortfall rose 13.7% from the previous month to $105.6 billion, according to data released by the Commerce Department's Bureau of Economic Analysis and Census Bureau on Tuesday. Economists polled by Reuters had expected the deficit to reach $102 billion.

The increase was driven largely by a surge in imports. Total imports rose 4.3% to $420.8 billion in August, while exports increased 1.4% to $315.2 billion.

Goods imports climbed 5.3% to $342.2 billion, compared with a 2.2% increase in goods exports to $205.7 billion.

More details awaited

About the Author

Prabhakar Jha is a journalist and digital news editor with nearly a decade of experience in online media, specialising in breaking news, politics, national affairs. Having built his career across fast-paced digital newsrooms, he has developed a reputation for delivering accurate, timely, and reader-friendly stories while leading editorial teams during high-pressure news cycles. In 2026, he joined LiveMint as a Digital Content Producer. <br><br> A postgraduate in History from the University of Delhi, Prabhakar combines strong editorial judgment with a keen interest in public policy, governance, economics, and global affairs. Before joining LiveMint, he worked with leading digital publications, including News9Live and The Times of India, where he handled breaking news, copy editing, headline writing, live coverage, and newsroom coordination. <br><br> Beyond the newsroom, Prabhakar is passionate about long-form writing and storytelling. He has a particular interest in global affairs. An avid reader with a love for literary fiction, he also enjoys blogging, poetry, and working on creative writing projects.