U.S. Trade Deficit Widens in May on Record Goods Imports
The United States trade deficit in goods and services widened to $77.6 billion in May as America imported more goods than it sold abroad.Imports rose, climbing 3.3 percent from the previous month, to $395.3 billion, as the United States imported more foreign pharmaceuticals, cellphones, cars and equipment to fill out new data centers.U.S.exports of goods and services fell 3.2 percent in the month, to $317.7 billion, according to data the Commerce Department released on Tuesday.
That included exports of gold, natural gas, computers and pharmaceuticals, which all fell from the previous month.The drop in goods exports was offset somewhat by an increase in service exports, including more revenue earned from foreigners traveling to the United States.Exports and imports of services both hit a record in May, as did U.S.
petroleum exports.Goods imports also hit a record high in the month.The combination increased the monthly trade deficit, the gap between what the United States imports and what it exports.
The U.S.trade deficit in goods and services bounced up more than 42 percent from the prior month.The Trump administration has sought to reduce the trade deficit with a vast swath of tariffs on foreign goods.
Those levies have caused imports, exports and the trade deficit to fluctuate wildly since President Trump came into office.On average, the monthly trade deficit in goods has been $96 billion in the 16 months since Mr.Trump returned to the White House.
That’s down about 5 percent from the monthly average in the 16 months before his second term began.Imports of some goods have fallen, but strong U.S.demand for artificial intelligence technology, foreign medicines and other goods not made in the United States have helped to prop up trade.The war in Iran has also affected trade, as the closure of the Strait of Hormuz scrambled supply chains for oil fertilizer, product packaging and helium.
In April, the U.S.trade deficit fell on a monthly basis, as the closure of...