U.S. TRADE GAP WIDENS TO WORST SINCE MARCH 2025

The U.S. goods and services deficit jumped to $105.6 billion in August, up from a revised $92.8 billion in July, the widest gap since March 2025, the Commerce Department reported. Imports rose $17.2 billion to $420.8 billion, led by capital goods: semiconductor purchases climbed $2.4 billion and industrial machinery $1.3 billion. Capital goods exports grew only $1.3 billion over the same month, widening the imbalance in a category tied directly to the AI buildout. The goods deficit alone widened $12.8 billion to $136.6 billion, while the services surplus barely moved. A wider trade gap subtracts from GDP growth and keeps pressure on the dollar ($DXY) into the next data cycle.