Key facts
- The U.S. trade deficit widened by 42.2% to $77.6 billion in May.
- This marks the highest trade deficit level in over a year.
- Record imports of capital goods, driven by AI investments, were the primary cause.
- Imports rose 3.3% to $395.3 billion, while exports fell 3.2% to $317.7 billion.
- Shipments of petroleum reached a record high amid the Middle East conflict.
The U.S. trade deficit significantly widened in May, reaching $77.6 billion, a 42.2% increase and the highest level in over a year. This surge was primarily driven by a record inflow of capital goods imports, which reached $128.0 billion, fueled by substantial investments in artificial intelligence.
Overall imports increased by 3.3% to $395.3 billion, while exports saw a decrease of 3.2% to $317.7 billion. Despite the overall decline in exports, shipments of petroleum reached a record high, influenced by the ongoing Middle East conflict, positioning the U.S. as a net oil exporter.
The widening trade gap suggests that trade may continue to act as a drag on the U.S. gross domestic product in the second quarter.