The United States trade deficit expanded sharply in August, reaching its highest level in more than a year as imports of crude oil, gold, and semiconductors surged, according to Commerce Department data released Tuesday. The deficit in goods and services grew by 14 percent from July, hitting a seasonally adjusted $106 billion, the largest monthly gap since March 2025.

The rise in crude oil imports was notable, with shipments from Canada increasing by over 8 million barrels in August. This contributed to the U.S. trade deficit with Canada widening to $7.1 billion, up from $3 billion the previous month, amid the imposition of new U.S. tariffs on various Canadian products. Overall, the goods trade deficit reached approximately $137 billion last month.

Semiconductors and related computer components also played a significant role in the expanding trade gap. The rapid growth in data-center investment has driven imports of these high-tech goods, which totaled $234 billion during the first eight months of 2026—marking a substantial rise compared to the same period in 2025. Analysts note that electronics remain largely exempt from tariffs imposed during the administration of President Donald Trump, facilitating continued import growth in this sector.

Despite the August increase, the trade deficit for the year through August remains roughly 20 percent smaller than in the comparable period of the previous year. U.S. exports also increased last month but did not keep pace with the faster growth in imports. Export values for crude and fuel oil climbed by $3.2 billion, reflecting elevated oil prices and ongoing disruption in global markets related to geopolitical tensions, including the conflict involving Iran.

The month-to-month fluctuations in the trade deficit have been pronounced under the Trump administration, driven largely by businesses adjusting to changing trade policies. In February, the Supreme Court struck down the broad use of the International Emergency Economic Powers Act by President Trump to impose tariffs worldwide. However, the administration has sought alternative legal avenues to regulate imports, implementing new tariffs in late July under a separate legal framework.

Overall, while the recent surge in imports has pushed the trade deficit to levels not seen since early 2025, annual trends suggest some moderation, as the impact of tariff-related stockpiling seen in President Trump’s second term has diminished.