The gap between what the United States buys from other countries and what it sells them grew sharply in August. The goods and services deficit rose to $105.6 billion, up $12.7 billion from a revised $92.8 billion in July, the Commerce Department's Bureau of Economic Analysis and Census Bureau said Tuesday.

Imports climbed $17.2 billion to $420.8 billion. Exports rose $4.5 billion to $315.2 billion. The goods deficit grew to $136.6 billion, while the surplus in services, such as travel and finance, held at about $31 billion.

PNC Economics said it was the biggest deficit on record outside early 2025. Back then, companies rushed to bring in goods before new tariffs took effect. The deficit reached a record $133 billion in March 2025. It then fell to about $37 billion in October 2025 as higher tariffs cut imports. Since then, it has more than doubled, PNC said.

What is driving the rebound? PNC pointed to two things: tariffs have come down from their peak earlier this year, and spending on artificial intelligence equipment keeps pulling in imports. Imports of semiconductors rose $2.4 billion in August, the government said. Imports of crude oil rose $3.3 billion.

Exports had some good news, as goods exports rose 2% to $205.7 billion, ending three straight months of declines, PNC said. Sales of crude oil, fuel oil and chips abroad all grew.

By country, the largest goods deficits were with Mexico at $27.7 billion, Vietnam at $24 billion and Taiwan at $18.3 billion. The gap with China was $16.4 billion. The deficit with Canada rose $4.1 billion to $7.1 billion.

For the year so far, the deficit is still about 20% smaller than in the same stretch of 2025, the government said.

The next monthly trade report comes Nov. 4.

What we know: Imports rose four times faster than exports in August.
What we don't: Whether AI-related buying keeps the gap this wide this fall.