The US trade deficit widened 13.7% in August from the previous month to $105.6 billion, the highest in 17 months since March 2025 and above the $102 billion forecast in a Reuters survey. The US Commerce Department said August imports rose 4.3% to a record $420.8 billion, with goods imports up 5.3% to $342.2 billion, partly as businesses rushed to restock inventories after five consecutive quarters of declines. Imports of capital goods rose $6.2 billion to a record $146.4 billion, driven by semiconductors and industrial machinery, reflecting accelerated investment in AI infrastructure. The latest deficit figure is also higher than at the time President Donald Trump won a second term in November 2024, when the deficit stood at $79.8 billion, even as Trump presses ahead with aggressive import tariff policies and the US continues to run trade deficits with at least three countries, including Mexico. Analysts assess that US production capacity is insufficient to meet domestic consumption demand, with Goldman Sachs cutting its third-quarter GDP growth estimate to 3.1% at an annualized rate from a previous forecast of 3.4%, while the US economy grew 2.2% in the second quarter.
Goldman Sachs Group IncGoldman Sachs cut its Q3 GDP growth estimate to 3.1% from 3.4% amid the record trade deficit.
