New Delhi, Oct 7: The US trade deficit in goods and services widened sharply to $105.6 billion in August, as imports grew faster than exports, according to data released by the US Census Bureau and Bureau of Economic Analysis.
The deficit increased by $12.7 billion from the revised $92.8 billion recorded in July. Imports rose 4.3 per cent to $420.8 billion, while exports increased 1.4 per cent to $315.2 billion during the month.
The widening gap was mainly driven by the goods trade deficit, which increased by $12.8 billion to $136.6 billion. Meanwhile, the US services surplus edged up by less than $0.1 billion to $31 billion.
Goods imports increased by $17.2 billion to $342.2 billion in August, with industrial supplies and materials accounting for a significant part of the increase.
Imports of crude oil rose by $3.3 billion, while imports of non-monetary gold increased by $3.1 billion, contributing to the overall rise in US imports.
India-US trade gap
The US recorded a $6.2 billion goods trade deficit with India in August, highlighting the continued flow of Indian goods into the US market.
Despite the monthly increase in the overall US trade deficit, the country’s cumulative trade gap through the first eight months of the year remained below the corresponding period of 2025. The cumulative deficit was down 19.9 per cent from the same period last year.
The latest figures come amid continued attention on global trade flows, import demand and the evolving trade relationship between the US and its major trading partners, including India.
The August data also underline the role of higher imports in widening the US trade gap, even as exports recorded a modest increase during the month.