U.S. Trade Deficit Widens in May on Record High Import of Goods

By the Editorial Team · Wednesday, July 8, 2026

The U.S. trade deficit widened to $77.6 billion in May as imports hit a record high while exports declined, driven by increased purchases of pharmaceuticals, electronics, and data center equipment. This marks the largest monthly deficit since 2017 and comes amid ongoing trade policy shifts, including pending investigations that may reinstate tariffs following a recent Supreme Court ruling.

The United States trade deficit in goods and services expanded to $77.6 billion in May as imports rose to a record high while exports declined. According to data released Tuesday by the Commerce Department, imports increased 3.3 percent from the previous month to $395.3 billion, driven by higher purchases of pharmaceuticals, cellphones, automobiles, and equipment used in new data centers.

Exports, in contrast, fell 3.2 percent to $317.7 billion, with decreases in shipments of gold, natural gas, computers, and pharmaceuticals. Service exports, including revenue from foreign tourism, partially offset the decline in goods exports, and both exports and imports of services reached record levels during the month. U.S. petroleum exports also hit a new monthly high.

This combination of rising imports and falling exports resulted in the largest monthly trade deficit since the Trump administration took office, with the deficit increasing more than 42 percent compared to April. The monthly goods deficit has averaged about $96 billion over the past 16 months, a slight decline of roughly 5 percent from the average prior to President Trump’s second term.

Efforts by the Trump administration to reduce the trade gap through wide-ranging tariffs have contributed to volatility in imports, exports, and the overall deficit since 2017. While some categories of imported goods have decreased, strong domestic demand for specialized products—such as artificial intelligence technologies and foreign pharmaceuticals not produced in the U.S.—has sustained high import levels.

Geopolitical factors have also influenced trade flows. The closure of the Strait of Hormuz amid tensions with Iran disrupted supply chains affecting oil, fertilizer, packaging, and helium. This disruption contributed in part to a temporary narrowing of the trade deficit in April, when U.S. petroleum exports surged to a record monthly volume.

Looking ahead, importers face uncertainty as the administration prepares to adjust trade policies following a Supreme Court ruling earlier this year that invalidated the broad tariffs implemented in 2019. In response, the Trump administration imposed a uniform 10 percent tariff on all trading partners in February as a temporary measure. However, the authority for this tariff is set to expire later this month.

To replace it, the administration is pursuing two significant trade investigations under Section 301 of the Trade Act, which could reinstate tariffs to their previous levels before the court’s decision. These developments suggest that U.S. trade policy will continue to play a central role in shaping the country’s import and export dynamics in the near term.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.