The United States trade deficit surged to $77.6 billion in May 2026, driven by a significant increase in imports, particularly in pharmaceuticals, mobile phones, and semiconductors. This data was released on July 7, 2026, by the US Department of Commerce’s Bureau of Economic Analysis and the Census Bureau.
Surge in Imports and Decline in Exports
Imports rose by 3.3 percent from April, totaling $395.3 billion, while exports fell by 3.2 percent to $317.7 billion. This resulted in the trade gap widening by 42.2 percent from the previous month, marking the largest increase in a year.
The rise in imports is attributed to a boom in artificial intelligence spending across various sectors, which has led to increased demand for high-tech goods. In particular, semiconductor imports surged by $1.2 billion.
Record Highs in Oil and Automotive Imports
In the oil and gas sector, petroleum imports hit a record high despite ongoing geopolitical tensions, including the US-Israel war on Iran. Notably, imports of crude oil saw an increase of $1.5 billion. Additionally, automotive parts and engines imports rose by $2.2 billion, with passenger car imports specifically increasing by $1 billion.
Amidst these trends, major car manufacturers are shifting their production strategies. For instance, Toyota announced a $3.6 billion investment to expand its US auto production, including moving the Tacoma pick-up truck production to San Antonio, Texas, by 2030. US President Donald Trump praised this move as a “really big deal,” emphasizing the effectiveness of tariffs.
Trade Deficits and Surpluses by Country
The US recorded its largest trade deficits in May with several countries, including:
- Vietnam: $20.6 billion
- Mexico: $20.1 billion
- Taiwan: $19.4 billion
- China: $14.5 billion
- European Union: $9.3 billion
Conversely, the US had its most significant trade surpluses with:
- Netherlands: $9.1 billion
- Hong Kong: $5.6 billion
- South and Central America: $4.8 billion
- Australia: $1.9 billion
- United Kingdom: $1.4 billion
In related news, Canada’s trade surplus has also widened for the fourth consecutive month, reaching a four-year high with a surplus of 4.24 billion Canadian dollars (approximately US$2.98 billion), driven by increased goods shipped to the US.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by Al Jazeera. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
