US trade deficit widens despite Trump tariffs: What August data tells us | Today’s news

The U.S. trade deficit widened more than expected in August despite President Donald Trump’s aggressive tariff measures, as strong domestic demand pushed imports higher and kept trade weighing on economic growth for a third straight quarter, Reuters reported.

The trade deficit widened 13.7% from the previous month to $105.6 billion, according to data released Tuesday by the Commerce Department’s Bureau of Economic Analysis and the Census Bureau. Economists polled by Reuters had expected the deficit to reach $102 billion.

The increase was mainly due to a sharp increase in imports. Total imports rose 4.3% to $420.8 billion in August, while exports rose 1.4% to $315.2 billion.

Merchandise imports climbed 5.3% to $342.2 billion, while merchandise exports rose 2.2% to $205.7 billion.