The U.S. goods and services trade deficit narrowed to $105.0 billion in September, down $0.7 billion from a revised $105.7 billion in August, the Census Bureau and the Bureau of Economic Analysis reported on Wednesday. Exports rose 1.9% to $321.5 billion, while imports rose 1.2% to $426.6 billion — a record that signals continued strength in domestic demand for capital equipment.

Total imports, goods imports and services imports each set all-time highs in September. The goods deficit fell $0.7 billion to $135.9 billion, while the services surplus eased by less than $0.1 billion to $30.9 billion.

What drove the record imports?

Capital goods led the increase. Goods imports rose $4.4 billion to $346.9 billion, with capital goods imports climbing $11.6 billion on a Census basis. Computers rose $7.6 billion and computer accessories rose $5.7 billion. Semiconductor imports fell $1.2 billion.

Capital goods imports hit a record $158.0 billion, according to Reuters, as companies expanding artificial intelligence capacity bought more computers and accessories. That single category explains most of the month's import growth.

Industrial supplies and materials moved the other way. Imports in that category dropped $3.7 billion, as nonmonetary gold slid $2.7 billion and crude oil slid $1.3 billion.

How did exports perform?

Goods exports rose $5.1 billion to $211.0 billion. Capital goods exports increased $3.8 billion, with civilian aircraft, computers and related accessories among the biggest contributors. Exports of foods, feeds and beverages rose $1.9 billion, including a $1.3 billion gain in soybeans. Nonmonetary gold exports fell $3.4 billion.

The nominal improvement conceals a larger real gap. Measured in 2017 dollars on a Census basis, the real goods deficit increased $3.5 billion, or 3.0%, to $119.5 billion — the largest since March 2025, according to Bloomberg.

Which countries account for the gap?

The bilateral goods deficits remained concentrated in Asia and North America. The September figures show:

• Mexico: $28.7 billion
• Vietnam: $25.3 billion
• Taiwan: $21.9 billion
• China: $17.9 billion
• European Union: $14.2 billion, up $3.2 billion
• Canada: $4.4 billion, down $2.7 billion

The Taiwan gap grew $3.6 billion. The United States logged record goods deficits with Mexico, Vietnam, Taiwan and South Korea, a distribution consistent with the AI-led surge in computer and component imports.

Where does the trend stand?

One month of narrowing does not reverse the recent widening. The three-month average deficit rose $11.3 billion to $101.2 billion. The August deficit had expanded to the largest monthly gap since March 2025, rising from $92.8 billion in July, driven by imports of industrial supplies and materials and of capital goods.

The year-to-date picture is more favorable. Through the first nine months of the year, the deficit was down $92.4 billion, or 12.2%, from the same period in 2025. Exports rose 11.6% over that span, outpacing import growth of 6.2%.

The next trade report, covering October, is scheduled for release on Dec. 8.