Croatia's goods trade deficit widened 5% to €16.0bn in the first nine months of 2026, first results from the National Bureau of Statistics showed.

Morocco’s nine-month trade deficit swelled 25.4% as factory equipment and energy imports surged, even as net foreign direct investment jumped 58.4%.

The U.S. trade deficit dipped slightly in September, but the real story is what's driving imports to all-time highs: companies racing to buy computers and AI hardware. Deficits with Mexico, Vietnam, Taiwan, and South Korea all hit records, signaling just how much global supply chains are shifting.

Gold exports drop 71%. Imports rise 16%.

The U.S. trade deficit dipped slightly in September, but the real story is what's driving imports to all-time highs: companies racing to buy computers and AI hardware. Deficits with Mexico, Vietnam, Taiwan, and South Korea all hit records, signaling just how much global supply chains are shifting.

U.S. exports rose 1.9% and imports rose 1.2% in September 2026, leaving a $105.0 billion goods and services deficit.

YouTube video by Platypus Economics with Justin Wolfers

The U.S. trade deficit has reached its highest level since President Donald Trump implemented sweeping tariffs on 'Liberation Day' in April 2025, according to the Bureau of Economic Analysis. The deficit grew by 13.7% to $105.6 billion from July to August 2026, marking the largest gap since March 2025's $140 billion. While imports increased by 4.3% to $420.8 billion, exports grew at a slower pace of 2.2% to $205.7 billion. Trump's administration had promised that tariffs would shrink the trade deficit, which represents when a country imports more goods than it exports. However, economists argue that the tariffs have not achieved this goal and may have even contributed to widening the deficit due to their volatile nature. The fluctuating tariff rates, such as the 145% on China that later dropped to around 30%, have created uncertainty that prevents businesses from making long-term supply chain adjustments. Instead, companies continue to import goods despite higher costs, adjusting prices rather than changing behavior. Experts attribute the growing deficit largely to the AI boom, which has driven demand for overseas hardware and added $200 billion to the deficit in April alone. Economists like Tarek Hassan of Boston University and Donald Boudreaux of George Mason University argue that a large trade deficit is not inherently negative; it reflects strong foreign investment in the U.S. economy, including through Treasuries, which provides cheap credit to Americans. Hassan warns that closing the deficit could lead to a crisis as foreign investment would taper, making it harder to finance the national debt. Boudreaux emphasizes that the deficit is a sign of economic health, not weakness, and that Trump's focus on reducing it overlooks the benefits of continued foreign investment. The White House, however, maintains that tariffs have spurred a manufacturing renaissance, citing trillions in manufacturing investments. Despite these claims, the data shows the deficit has widened, and economists remain skeptical of the administration's approach. The situation highlights the complex relationship between trade policies, economic indicators, and global market dynamics, particularly in the context of rapid technological advancements like AI.

The U.S. trade deficit surged to $105.6 billion in August — the largest monthly shortfall since just before Trump's 'liberation day' tariff blitz — driven by rising imports of crude oil, gold, and semiconductors. Even so, the cumulative deficit for the year is still running about 20% below where it was at this point in 2025, complicating the tariff policy's scorecard.

The US trade gap widened sharply in August as imports of capital goods and semiconductors surged, raising fresh questions over whether tariffs are reducing America’s reliance on overseas goods

New data from the Commerce Department showed that imports grew in the month, despite the Trump administration’s efforts to limit foreign products.

Imports and the trade deficit have ballooned in recent months, defying the Trump administration’s efforts to reduce it through tariffs.

The U.S. trade deficit surged to $105.6 billion in August — the largest monthly shortfall since just before Trump's 'liberation day' tariff blitz — driven by rising imports of crude oil, gold, and semiconductors. Even so, the cumulative deficit for the year is still running about 20% below where it was at this point in 2025, complicating the tariff policy's scorecard.

The U.S. trade deficit reached its highest level in 17 months in August, marking a significant setback for President Donald Trump's tariff strategy aimed at reducing the gap. According to data from the Commerce Department, the deficit rose 13.7 percent from July to $105.6 billion, driven primarily by a 4.3 percent increase in imports to an all-time high of $420.8 billion. Exports grew more slowly at 1.4 percent, reaching $315.2 billion, resulting in a widening gap as imports outpaced exports. The surge in imports was largely fueled by petroleum, gold, and advanced computer chips used in artificial intelligence, reflecting the rapid expansion of the AI industry. Trump has long cited the trade deficit as evidence of weakened American manufacturing, implementing steep tariffs on various goods including steel, auto parts, toys, and drones. However, the deficit has continued to grow, partly due to the AI sector's demand for imported chips manufactured in Asia. Economists have long argued that tariffs are unlikely to address the trade imbalance, which is influenced more by broader economic factors such as growth rates and federal debt levels. The deficit has fluctuated significantly during Trump's second term, initially spiking as companies stockpiled goods ahead of tariffs, then declining after the 'Liberation Day' tariffs took effect. Following a Supreme Court ruling that struck down most of those tariffs, the administration has sought alternative legal means to reinstate them. Despite new tariffs imposed on over 80 countries in July, the deficit continued to rise, reaching levels higher than when the tariffs were first announced. The administration is now preparing additional tariffs affecting more than 40 countries, but the current data suggests these measures may not achieve their intended economic goals. The situation highlights the complex interplay between trade policy, global market dynamics, and the challenges of using tariffs to address structural economic issues.

China accounts for 23% of import-export turnover, Russia 16%.

China accounts for 23% of import-export turnover, Russia 16%.