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Trump's tariffs face a reality check, failing to reduce U.S. imports;August the trade deficit surged to 105600000000 USD According to BlockBeats,October 7, data from the U.S. Department of Commerce showed that the U.S.August goods and services trade deficit rose to 105600000000 USD, up from the July revised 92800000000 USD by 13.7%, reaching a 17-month high. Imports rose 4.3%month on month to 420800000000 USD, setting a record; exports rose only 1.4%to 315200000000 USD.

The main driver of the surge in imports was capital goods. Data showed that U.S.August capital goods imports increased 6200000000 USD to 146400000000 USD, also a record high, with strong demand for products related to AI data center construction, including advanced semiconductors and industrial electromechanical equipment.

Analysts believe that the Trump administration sought to curb imports and narrow the trade deficit by raising tariffs, but robust U.S. consumption and corporate capital expenditure, particularly the investment boom in AI computing infrastructure, are offsetting the suppressive effects of tariffs on imports. With domestic replacement capacity yet to emerge in the United States, companies still need to procure high-end chips, servers, and industrial equipment from overseas. Tariffs have done more to alter suppliers and trade routes than to reduce overall import demand.

Meanwhile, the surge in imports is expected to continue weighing on U.S. third-quarter GDP, but strong private consumption and corporate capital expenditure may still drive third-quarter GDP annualized growth to remain above 3%.

Original link https://m.theblockbeats.info/flash/370606