Trade deficit widens 13.7% as imports hit record high

The U.S. goods trade deficit widened to $105.6 billion in August, up 13.7% from the prior year and the largest level in 17 months, according to the Commerce Department’s Bureau of Economic Analysis and Census Bureau. Record imports—driven by solid domestic demand—left businesses dependent on goods produced overseas despite President Donald Trump’s aggressive tariffs, which were meant to reduce the trade gap. Economists surveyed by Reuters had projected a smaller deficit of $102.0 billion. Imports rose 4.3% to an all-time high of $420.8 billion, with goods imports up to $342.2 billion. Exports increased 1.4% to $315.2 billion.