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U.S. Trade Deficit Jumps to $77.6 Billion in May as Imports Climb

Exports fell by $10.5 billion in May while imports rose by $12.5 billion compared to April, according to federal data.

Philip Smith (left) of Statistics Canada; Nariman Behravesh
Philip Smith (left) of Statistics Canada; Nariman…      Bureau Of Economic Analysis    Department of Commerce / Wikimedia Commons (Public domain)
By Free News Press Editorial Team
Published July 7, 2026 at 2:01 PM PDT

The United States trade deficit widened sharply in May 2026, reaching $77.6 billion, a jump of $23.0 billion from the revised April figure of $54.6 billion.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis released the figures Tuesday. May exports totaled $317.7 billion, down $10.5 billion from April. Imports came in at $395.3 billion, up $12.5 billion from the prior month.

The widening deficit was driven largely by the goods side of the ledger. The goods deficit increased $23.6 billion to $106.5 billion. The services surplus grew slightly, up $0.6 billion to $28.9 billion, which partially offset the goods deterioration.

On the export side, goods exports fell $11.3 billion to $210.6 billion. Several categories declined. Industrial supplies and materials dropped $5.5 billion, with nonmonetary gold alone accounting for $6.2 billion of that decrease. Other precious metals fell $1.3 billion, and natural gas exports dropped $1.1 billion. Capital goods exports declined $3.5 billion, with computers down $2.1 billion and computer accessories off $2.0 billion. Consumer goods exports also fell $2.1 billion, including a $0.9 billion drop in pharmaceutical preparations. Crude oil was one of the few bright spots on the export side, rising $2.0 billion.

Services exports moved in the opposite direction, rising $0.8 billion to $107.1 billion. Travel increased $0.4 billion, while other business services, transport, and financial services each added $0.1 billion.

On the import side, goods imports rose $12.3 billion to $317.0 billion. Consumer goods drove part of that increase, climbing $3.5 billion.

Despite the large monthly swing, the year-to-date picture tells a different story. Through May 2026, the goods and services deficit has actually decreased $203.9 billion, or 40.6 percent, compared to the same period in 2025. Year-to-date exports are up $164.7 billion, or 11.7 percent, while year-to-date imports have fallen $39.2 billion, or 2.1 percent.

The three-month moving average also showed a more moderate trend. The average deficit for the three months ending in May was $62.9 billion, up $7.5 billion from the prior period. Average exports for that span reached $321.5 billion, while average imports stood at $384.5 billion.

Year-over-year, the average goods and services deficit fell $23.8 billion compared to the three months ending in May 2025. Average exports were up $36.1 billion from a year ago, while average imports had increased $12.4 billion.

Assignment- BEA 2005 6574 1) Bureau of Economic Analysis - Bureau of Economic Analysis (BEA) Advisory Committee Briefing (40 CFD BEA 2005 6574 1 DSC 3387.jpg - DPLA - e6536a0f10c57c076949c1b2b0c547c3
Assignment- BEA 2005 6574 1) Bureau of Economic A…      Bureau Of Economic Analysis    Department of Commerce. Office of the Secretary. 1913 / Wikimedia Commons (Public domain)