US trade gap widens more than expected in August

WASHINGTON, DC, United States (AFP) — The US trade deficit expanded more than analysts anticipated in August, Government data showed Tuesday, hovering at its widest since March 2025 on a boost from imports of oil and tech products like chips.

The trade gap in the world’s biggest economy jumped 13.7 per cent to US$105.6 billion, according to Commerce Department data.

This was larger than the US$102 billion projected in a consensus forecast released by MarketWatch.

US trade flows have swung significantly since President Donald Trump returned to the White House in January 2025, as businesses rushed to get ahead of his sweeping, and fast changing, tariffs on trading partners.

The latest figures, which are adjusted for seasonality but not inflation, also reflect a surge in global energy prices from war in the Middle East.

US-Israel strikes targeting Iran since late February had triggered Tehran’s response in blocking the Strait of Hormuz — a key waterway for energy transport — sending oil prices soaring.

Both sides remain locked in conflict.

In August, US imports rose by 4.3 per cent to US$420.8 billion, driven by crude oil, gold, semiconductors and industrial machinery.

US exports climbed by 1.4 per cent to US$315.2 billion, partially driven by energy exports too.