Key facts
- The US trade deficit reached $77.6 billion in May.
- This is the widest deficit recorded in 14 months.
- Exports of industrial supplies and consumer goods decreased.
- Imports of goods and services increased.
- The deficit in goods widened to $106.5 billion.
- The services surplus grew to $28.9 billion.
The US trade deficit in May widened to $77.6 billion, marking the largest gap in 14 months. This increase was attributed to a decline in exports of industrial supplies and consumer goods, coupled with a rise in imports. The deficit in goods alone expanded to $106.5 billion, while the surplus in services grew to $28.9 billion.
According to Oxford Economics, this wider deficit is expected to subtract approximately 2 percentage points from second-quarter GDP growth. However, the firm anticipates that strong business investment and inventory accumulation will help maintain annual GDP growth above 2% for the quarter.
US exports of goods decreased to $210 billion in May from $222 billion in April, while goods imports climbed to $317 billion from $305 billion. Exports of industrial supplies, which include energy, metals, and fertilizer, fell to $83 billion. Nonmonetary gold exports were more than halved to $5.7 billion. Capital goods exports declined by $3.5 billion to $66.9 billion, and auto and parts exports remained largely unchanged at about $13 billion. Consumer goods exports saw a $2 billion decrease, reaching $20.7 billion.
Imports of food, industrial supplies, and capital goods, excluding autos, all increased. Auto imports were approximately $37 billion, and consumer goods imports rose to nearly $60 billion. In terms of energy trade, unadjusted exports of crude oil rose to 5.71 million barrels per day in May from 5.57 million barrels per day in April, while crude imports fell to 5.58 million barrels per day from 5.92 million barrels per day.
US president Donald Trump had previously imposed 10% tariffs on goods from most trading partners, which are set to expire on July 24. The Tax Foundation estimates these tariffs will increase taxes on Americans by about $700 per household in 2026.