The US trade deficit widened in May as imports rose and exports tumbled.
The gap in goods and services trade grew 42.2 percent from the prior month to $77.6 billion, Commerce Department data showed Tuesday. Exports declined by 3.2 percent by value in May, driven by a drop in the volatile nonmonetary gold category. Imports rose 3.3 percent to the highest level since March 2025.
The wider deficit suggests that the U.S. household’s demand for goods and services remains high. Imports of consumer goods rose by $3.5 billion, driven by demand for smartphones and pharmaceuticals. Automotiver imports rose by $2.1 billion, including $1.0 billion in passenger cars.
Merchants may also be stockpiling imports in anticipation of higher tariffs. Industrial supplies and materials imports rose by $3.1 billion. Imports of computer accessories increased $1.2 billion and semiconductors increased $1.0 billion. Imports of computers declined.
In recent months, the trade deficit has been volatile. Demand for semiconductors and technology has boosted imports while soaring oil prices gave a lift to exports. Oil exports continued to rise in May, although more recent data indicate that petroleum shipments have reverted to pre-war levels as the Strait of Hormuz has reopened and oil prices have declined.
Read the full article here