U.S. Trade Deficit Hits $77.6 Billion in May, Largest in 14 Months

Increase in Imports of Semiconductors, Automobiles, and More

In May 2026, the United States recorded its largest trade deficit in one year and two months. The deficit widened as imports of capital goods related to artificial intelligence (AI) investment increased, while exports of items such as gold and natural gas declined.

The U.S. Department of Commerce announced on July 7 (local time) that the goods and services trade deficit for May reached $77.6 billion, up 42.2% from the previous month. This is the largest monthly deficit since March 2025.

Exports in May 2026 fell by 3.2% month-on-month. Exports of industrial supplies and capital goods decreased overall, with nonmonetary gold down by $6.2 billion and natural gas down by $1.1 billion.

Imports rose by 3.3%, reaching their highest level since March 2025. Imports of consumer goods such as pharmaceuticals increased by $3.5 billion. In addition, imports of capital goods—including semiconductors (up $1 billion) and computer peripherals (up $1.2 billion)—as well as industrial raw materials like crude oil, all saw simultaneous increases.

By trading partner, the largest trade deficits were with Vietnam ($20.6 billion), Mexico ($20.1 billion), Taiwan ($19.4 billion), China ($14.5 billion), and the European Union (EU, $9.3 billion). The U.S. recorded a $4.4 billion deficit with Korea.

This content was produced with the assistance of AI translation services.