The US trade deficit widened to its largest level in 14 months in May, as a drop in exports combined with a rise in imports.
The Commerce Department said Tuesday the goods and services trade deficit rose 42.2 percent from the previous month to $77.6 billion in May.
The figure came in slightly below the market consensus of $78.4 billion compiled by Bloomberg, but marked the largest deficit since March 2025.
Exports fell 3.2 percent from the prior month.
Non-monetary gold exports declined by $6.2 billion and natural gas exports dropped $1.1 billion, with industrial supplies and capital goods exports broadly contracting.
Imports, meanwhile, rose 3.3 percent — their highest level since March 2025.
Consumer goods imports, led by pharmaceuticals, increased by $3.5 billion. Capital goods imports also rose, including semiconductors ($1 billion) and computer accessories ($1.2 billion), along with industrial raw materials such as crude oil.
By country, the US ran its largest bilateral trade deficit with Vietnam at $20.6 billion, followed by Mexico ($20.1 billion), Taiwan ($19.4 billion), China ($14.5 billion) and the EU ($9.3 billion).
The deficit with South Korea stood at $4.4 billion.
However, the cumulative trade deficit for January through May totaled $298.4 billion, down $203.9 billion, or 40.6 percent, from the same period last year.
sjy@heraldcorp.com
