US Goods Trade Deficit Narrows as Exports, Imports Fall

The US goods trade deficit widened to $132.6 billion in August 2026 from $118.9 billion in July, according to preliminary data. It was the largest deficit since March 2025, when the gap reached a record $158.7 billion, and came well above market expectations of a $115 billion shortfall. Imports rose 5.5% from the prior month to a 17-month high of $336.1 billion, driven by a 16.6% surge if inbound shipments of industrial supplies (16.6%), while capital goods, which include computers, semiconductors and telecommunications equipment, also rose 4%. Meanwhile, exports increased 1.9% to $203.4 billion, ending three consecutive months of declines, also picking up in outbound shipments of industrial supplies (8.3%) and capital goods (2%). However, exports of automotive vehicles fell 6.9%. The trade deficit has fluctuated as the conflict in the Middle East has boosted global demand for US petroleum products and American firms stockpiled goods and materials to mitigate supply-chain disruptions.

The US goods trade deficit widened to $118.8 billion in July 2026 from $101.4 billion in June, according to preliminary data. It was the largest deficit since March 2025, when it reached a record $158.7 billion. Imports rose 3.7% to a 16-month high of $318.2 billion, driven by higher purchases of capital goods (11.3%) and consumer goods (0.1%), which more than offset declines in industrial supplies (-3.9%), automotive vehicles (-1.6%), and foods, feeds, and beverages (-0.9%). Meanwhile, exports fell 2.9% to $199.4 billion, marking a third consecutive monthly decline and their lowest level since January. The decrease was led by lower shipments of industrial supplies (-11.2%), foods, feeds, and beverages (-1.4%), and automotive vehicles (-0.7%).

The US goods trade deficit narrowed to $101.5 billion in June 2026 from a 14-month high of $105.9 billion in May, according to preliminary data. Exports fell 1.8% to $204.7 billion, marking a second straight monthly decline and moving further below April's record high, driven by lower shipments of industrial supplies (-4.4%), foods, feeds, and beverages (-3.1%), and capital goods (-1.1%). Imports declined at a faster 2.6% to $306.2 billion, with purchases falling across all major categories, including consumer goods (-3.8%), capital goods (-2.0%), industrial supplies (-1.9%), vehicles (-2.5%), and foods, feeds, and beverages (-2.5%). In the first half of 2026, the cumulative goods trade deficit narrowed to $535.5 billion from $716.6 billion in the same period a year earlier, suggesting trade flows are continuing to normalize following last year's US tariff announcements, although uncertainty surrounding US trade policy remains.