WASHINGTON — The U.S. trade deficit widened sharply in May as imports increased and exports declined, according to data released by the Commerce Department, reversing much of the improvement recorded earlier this year and underscoring persistent shifts in trade flows.
The U.S. Census Bureau and the Bureau of Economic Analysis said the seasonally adjusted goods and services trade deficit rose to $77.6 billion in May from a revised $54.6 billion in April, an increase of $23.0 billion, or 42.2%. Exports fell 3.2% to $317.7 billion, while imports climbed 3.3% to $395.3 billion.
The wider deficit reflected a $23.6 billion increase in the goods trade gap, which reached $106.5 billion during the month. The services surplus expanded modestly by about $0.6 billion to $28.9 billion, partially offsetting the deterioration in the goods balance.
Exports of goods declined by $11.3 billion, led by a $5.5 billion drop in industrial supplies and materials, including a sharp fall in nonmonetary gold shipments. Services exports increased slightly, supported by gains in travel, transportation, financial services and other business services.
On the import side, goods imports increased by $12.3 billion, driven by higher purchases of consumer goods, industrial supplies, automotive vehicles and parts, and capital goods. Imports of pharmaceutical preparations, crude oil, passenger cars, semiconductors and computer accessories all increased during the month, according to the report. Services imports edged higher, reflecting increased insurance services.
The Commerce Department also reported that the inflation-adjusted goods deficit widened to $100.0 billion in May. Real exports of goods fell 6.6%, while real goods imports rose 1.9%, indicating that trade could weigh on second-quarter economic growth if the trend persists.
Despite the monthly increase, the cumulative goods and services deficit for the first five months of 2026 remained substantially below the same period a year earlier. The year-to-date deficit was down by $203.9 billion, or 40.6%, as exports rose 11.7% from the comparable period in 2025 while imports declined 2.1%.
Among major trading partners, the United States recorded its largest goods trade deficits in May with Vietnam, Mexico, Taiwan and China. The deficit with Mexico widened markedly from April, while the balance with Switzerland shifted from a surplus to a deficit following a steep decline in U.S. exports.
The next U.S. international trade report, covering June data, is scheduled for release on Aug. 4, according to the Bureau of Economic Analysis.
