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 increased purchases of industrial supplies (16.6%), food, feeds and beverages (5.5%), and capital goods (4%). Meanwhile, exports increased 1.9% to $203.4 billion, ending three consecutive months of declines, supported by higher shipments of industrial supplies (8.3%) and capital goods (2%). However, exports of automotive vehicles fell 6.9%, while shipments of food, feeds and beverages declined 5.6%.