The US trade deficit widened sharply to $77.6 billion in May 2026 from a revised $54.6 billion in April, broadly matching market expectations of a $78.5 billion shortfall. This was the largest gap since March 2025, driven by a 3.3% increase in imports to $395.3 billion, the highest level in more than a year. The rise in imports was led by stronger purchases of consumer goods—especially pharmaceutical preparations and cell phones—as well as crude oil and passenger cars.
In contrast, exports fell 3.2% to $317.7 billion, pressured by lower shipments of nonmonetary gold and other precious metals, computers and computer accessories, and consumer goods, particularly pharmaceutical preparations. The May trade figures indicate that net exports are likely to exert a larger drag on second-quarter GDP than they did in the first quarter.
At the same time, trade policy uncertainty remains elevated as the Trump administration explores alternative tariff measures and moves toward annual trade reviews with Canada and Mexico.
