The significant widening of the trade deficit to $134.9 billion surpassed standard consensus forecasts due to a sharp 7.5 percent increase in capital goods imports. Semiconductors, telecommunications equipment, and computing hardware essential for expanding data centers fueled this massive influx of foreign technology. Although domestic exports experienced gains led by food, beverages, and consumer products, the overwhelming volume of tech imports heavily outweighed these outward shipments. Updated economic models now project that this substantial trade imbalance will deduct nearly three percentage points from third-quarter growth.
Key points
Surging investments in artificial intelligence infrastructure are directly accelerating t…: Surging investments in artificial intelligence infrastructure are directly accelerating the import of crucial technology hardware from foreign markets.
Stronger domestic performance in food, beverages, and consumer products led a modest over…: Stronger domestic performance in food, beverages, and consumer products led a modest overall increase in total American exports.
Foreign trade will act as a substantial drag on the broader economy according to the late…: Foreign trade will act as a substantial drag on the broader economy according to the latest quarterly growth calculations.
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06:50:00 PM IST, 28 Oct 2026
US Stock Market Live: US trade deficit hits 18 month high driven by AI hardware imports
The US merchandise trade deficit expanded to $134.9 billion in September, reaching its widest gap since March 2025. This shortfall exceeded consensus forecasts and was primarily driven by a 7.5% surge in capital goods imports, which includes semiconductors, telecommunications gear, and computing hardware essential for outfitting data centers during the ongoing artificial intelligence boom.
While total exports also rose, led by gains in food, beverages, and consumer products, the elevated import volume for tech infrastructure continues to weigh heavily on net trade. These figures indicate that foreign trade will remain a substantial drag on third-quarter economic growth, with updated models estimating a nearly three-percentage-point deduction from gross domestic product.
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