US Trade Deficit Jumps 42.2% to $77.6 Billion in May

The U.S. international trade deficit in goods and services widened to $77.6 billion in May 2026, up $23.0 billion from the revised $54.6 billion recorded in April. During the month, exports fell 3.2% to $317.7 billion, while imports rose 3.3% to $395.3 billion.

May exports declined by $10.5 billion from April, while imports increased by $12.5 billion. The wider trade deficit reflected a $23.6 billion increase in the goods deficit to $106.5 billion, partly offset by a $0.6 billion rise in the services surplus to $28.9 billion. So far in 2026, the goods and services deficit has decreased $203.9 billion, or 40.6%, compared with the same period in 2025. Exports have increased $164.7 billion (11.7%), while imports have decreased $39.2 billion (2.1%).

The three-month average trade deficit increased $7.5 billion to $62.9 billion for the period ending in May. Average exports rose $2.0 billion to $321.5 billion, while average imports increased $9.5 billion to $384.5 billion. Compared with the three months ending in May 2025, the average trade deficit was $23.8 billion lower, with average exports up $36.1 billion and average imports up $12.4 billion.

Goods exports fell $11.3 billion to $210.6 billion, led by declines in industrial supplies and materials ($5.5 billion), capital goods ($3.5 billion) and consumer goods ($2.1 billion). However, services exports increased $0.8 billion to $107.1 billion. On the import side, goods imports rose $12.3 billion to $317.0 billion, driven by higher imports of consumer goods ($3.5 billion), industrial supplies and materials ($3.1 billion), automotive vehicles, parts and engines ($2.2 billion) and capital goods ($1.1 billion). Services imports increased $0.2 billion to $78.2 billion.

In inflation-adjusted terms, the real goods deficit increased $15.8 billion, or 18.7%, to $100.0 billion in May. The United States recorded its largest trade deficits with Vietnam ($20.6 billion), Mexico ($20.1 billion), Taiwan ($19.4 billion), China ($14.5 billion), the European Union ($9.3 billion), Canada ($7.0 billion), Germany ($5.7 billion), Malaysia ($4.7 billion), South Korea ($4.4 billion) and India ($4.1 billion). The next U.S. International Trade in Goods and Services report, covering June 2026, will be released on August 4, 2026.