US Trade Deficit Largest in Over a Year
2026-07-07 12:39
By
Joana Ferreira
1 min. read
The US trade deficit widened sharply to $77.6 billion in May 2026 from a revised $54.6 billion in April, broadly in line with market expectations of a $78.5 billion shortfall.
The gap was the largest since March 2025, as imports climbed 3.3% to $395.3 billion, their highest level in more than a year.
The increase was driven primarily by higher purchases of consumer goods, particularly pharmaceutical preparations and cell phones, as well as crude oil and passenger cars.
Meanwhile, exports fell 3.2% to $317.7 billion, weighed down by lower shipments of nonmonetary gold and other precious metals, computers and computer accessories, and consumer goods, particularly pharmaceutical preparations.
May's trade data suggests net exports will weigh more heavily on second-quarter GDP than in the first.
Meanwhile, ongoing trade policy uncertainty persists as the Trump administration pursues alternative tariff measures and shifts to annual trade reviews with Canada and Mexico.