WASHINGTON — The U.S. trade deficit widened sharply in May as imports climbed to a record level, driven by a surge in goods purchases led by capital equipment and other products, according to data released by the U.S. Census Bureau and the Bureau of Economic Analysis.
The goods and services trade deficit increased to $77.6 billion in May from a revised $54.6 billion in April, the agencies said. Total imports rose 3.3% to a record $395.3 billion, while exports fell 3.2% to $317.7 billion.
The widening gap reflected a $23.6 billion increase in the goods deficit, which reached $106.5 billion, partially offset by a modest rise in the services surplus to $28.9 billion. Officials said imports of capital goods reached an all-time high of $128.0 billion during the month, while petroleum exports also set a record.
Government data showed imports increased across several categories, including industrial supplies, motor vehicles and consumer goods, while exports declined in major sectors such as capital goods, consumer goods and industrial supplies. The increase in imports outpaced export activity, widening the overall trade imbalance.
The United States recorded its largest goods trade deficits in May with Vietnam, Mexico, Taiwan and China, according to the report. The deficit with Mexico widened as imports from the country increased and U.S. exports declined, while the balance with Switzerland shifted from a surplus to a deficit during the month.
Economists said the rise in imports reflected continued strong domestic demand and elevated business investment, including spending tied to artificial intelligence infrastructure. Some analysts also cited efforts by businesses to secure supplies ahead of potential trade policy changes and higher shipping costs linked to geopolitical tensions.
The larger trade gap is expected by some economists to weigh on second-quarter economic growth because net exports are a component of gross domestic product. However, trade data represent only one element of broader GDP calculations, which also include consumer spending, business investment and government expenditures.
The Census Bureau and the Bureau of Economic Analysis said the next monthly report on U.S. international trade in goods and services, covering June 2026, is scheduled for release on Aug. 4.
