US trade gap widens sharply as imports climb in May
Commerce Department data showed a 42.2% monthly increase in the May deficit, with imports rising and exports falling.
By Sofia Marchetti · World Affairs Correspondent
2 min read
The United States trade deficit widened sharply in May as imports rose and exports declined, according to data released Tuesday by the Commerce Department’s Bureau of Economic Analysis and the Census Bureau. The gap reached $77.6bn, up 42.2% from April, the agencies reported.
The figures point to strong demand for foreign goods, including pharmaceuticals, mobile phones and semiconductors. Imports increased 3.3% from April to $395.3bn, while exports fell 3.2% to $317.7bn, according to the report.
The monthly increase was the largest in a year, according to the government data cited by Al Jazeera and Reuters. The rise came during a wave of artificial intelligence-related spending across the economy, with semiconductor imports alone increasing by $1.2bn.
Energy also added to the import bill. The data showed petroleum imports climbed to a record level in May, while crude oil imports rose by $1.5bn, even as the US-Israel war on Iran continued.
Auto-related imports rose as well. Imports of automotive parts and engines increased by $2.2bn, and passenger car imports were up $1bn, according to the government figures.
Al Jazeera and Reuters reported that those increases came as automakers faced pressure from tariffs and looked to expand production in the United States. Toyota said it would spend $3.6bn to expand US auto production and move production of its Tacoma pickup truck to San Antonio, Texas, by 2030.
US President Donald Trump praised Toyota’s announcement on Truth Social, calling it “a really big deal” and saying it showed “tariffs at work.”
Largest bilateral gaps
The Commerce Department data showed the biggest US trade deficits in May were with several major manufacturing and trading partners.
- Vietnam: $20.6bn
- Mexico: $20.1bn
- Taiwan: $19.4bn
- China: $14.5bn
- European Union: $9.3bn
The United States also recorded trade surpluses with several partners, according to the same data. The largest were with the Netherlands at $9.1bn, Hong Kong at $5.6bn, South and Central America at $4.8bn, Australia at $1.9bn and the United Kingdom at $1.4bn.
Separate figures released Tuesday by Statistics Canada showed Canada’s trade surplus widened for a fourth consecutive month. The agency said Canada posted a surplus of 4.24 billion Canadian dollars, or $2.98bn, a 0.9% increase from the previous month.
Statistics Canada also reported that Canadian goods shipments to the United States reached their highest level since February 2025. The Canadian surplus was its highest in four years, according to the agency.
This story draws on original reporting from Al Jazeera.