US Trade Deficit Widens to Biggest in Over a Year

The US trade deficit has widened to its largest in over a year, with a 42.2% increase from the prior month to $77.6 billion in May. This increase is attributed to a broad-based rise in imports and a decline in exports. The Commerce Department data shows that exports fell 3.2% by value in May, while imports rose 3.3% to the highest level since March 2025. The wider deficit is likely to impact second-quarter GDP estimates, with economists predicting that net exports could subtract more from growth than in the first quarter. The increase in imports reflects strong domestic demand, a firmer dollar, and possible front-loading of imports ahead of tariffs. The data also shows that oil exports continued to increase in May, while imports of computer accessories and semiconductors rose again. The US goods trade deficits with Mexico and Vietnam widened to a record in May, while the gaps with Canada and China also expanded.