US trade deficit widens to $77.6 bn in May

The United States reported a trade deficit of $77.6 billion in May 2026, a 42.2% rise from the previous month. Exports fell 3.2% to $317.7 billion while imports grew 3.3% to $395.3 billion. The import surge was led by AI‑related technology, pharmaceuticals, mobile phones, semiconductors, crude oil and automotive parts, including a $1 billion increase in passenger‑car imports.

Deficits were largest with Vietnam ($20.6 bn), Mexico ($20.1 bn), Taiwan ($19.4 bn) and China ($14.5 bn); the U.S. posted a $4.1 bn goods deficit with India as well. Surpluses were recorded with the Netherlands, Hong Kong, South and Central America, Australia and the United Kingdom. The widening gap occurs despite the Trump administration’s tariff strategy; a temporary 10% levy remains in place after the Supreme Court struck down broader tariffs, and new Section 301 investigations are being prepared. Middle‑East tensions and oil‑supply disruptions also influenced trade flows.