U.S. Trade Deficit Expands to $77.6 Billion in May, Fueled by AI‑Driven Goods Imports

U.S. trade deficit climbs to $77.6 billion in May, with pharmaceuticals and semiconductors driving the increase.

Published On 7 Jul 20267 Jul 2026

The United States trade balance swung to a deficit of $77.6 billion in May, as imports rose sharply at the expense of exports. Key imports included pharmaceuticals, mobile phones, and semiconductors Federaalka.

Imports increased 3.3 percent from April to reach $395.3 billion, while exports fell 3.2 percent to $317.7 billion, according to a joint report from the U.S. Department of Commerce’s Bureau of Economic Analysis and the Census Bureau.

Overall, the trade gap expanded by 42.2 percent month‑over‑month, marking its largest single‑month jump in a year.

The surge coincided with a recently recorded boom in artificial‑intelligence spending across the economy, prompting a steep rise in high‑technology imports. Semiconductor imports alone grew by $1.2 billion.

The oil and gas sector also contributed to the widening deficit, with crude‑oil imports reaching a record high and rising by $1.5 billion, even as geopolitical tensions in the Middle East persisted.

Automotive parts and engines imports jumped by $2.2 billion, with passenger‑car imports rising by $1 billion, reflecting manufacturers’ efforts to relocate production stateside amid heightened tariff pressures.

Automaker Toyota announced a $3.6 billion investment to expand U.S. production, including a move of its Tacoma pickup truck manufacturing to a new San Antonio, Texas, plant by 2030.

U.S. President Donald Trump welcomed the investment, calling it “a really big deal,” and noted that “tariffs at work” in a post on his social media platform, Truth Social.

The United States logged its largest trade deficits in May with Vietnam ($20.6 billion), Mexico ($20.1 billion), Taiwan ($19.4 billion), China ($14.5 billion), and the European Union ($9.3 billion). Largest trade surpluses were seen with the Netherlands ($9.1 billion), Hong Kong ($5.6 billion), South and Central America ($4.8 billion), Australia ($1.9 billion), and the United Kingdom ($1.4 billion).

Neighboring Canada recorded a trade surplus that widened for a fourth consecutive month, hitting a four‑year high. Canadian exports to the United States reached the highest level since February 2025, according to Statistics Canada, which released its trade data on Tuesday.

Canada’s trade surplus was valued at 4.24 billion Canadian dollars (US$2.98 ajaran), representing a 0.9 percent month‑over‑month increase.

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