The U.S. trade deficit in goods and services expanded by 13.7% month-over-month to $105.6 billion in August, exceeding economists' expectations of $102.1 billion and reaching its highest level since March 2025, data from the Commerce Department showed on Tuesday. The widening deficit was driven by record-high imports of $420.8 billion, with semiconductor imports seeing a historic monthly increase of $2.4 billion, reflecting the ongoing expansion of AI data center construction. Imports of industrial goods (including petroleum) also rose by $9.1 billion. The larger-than-expected deficit weighed on market expectations for third-quarter economic growth, leading both Goldman Sachs and the Atlanta Fed's GDPNow model to lower their forecasts.