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3w ago

U.S. Goods Trade Deficit Widens to $105.8 Billion in May

A drop in goods exports alongside a rise in imports is likely to lower second-quarter GDP estimates.

APM Terminals at the Port of Los Angeles, California, U.S., March 4, 2026. REUTERS/Mike Blake/File Photo
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US Trade Deficit Widens as SoftBank and AI Chipmakers Shift Spending

Overview

  • The U.S. Census Bureau's advance goods report showed the May goods deficit at $105.8 billion, larger than expectations and the biggest monthly gap since July 2025.
  • Goods exports fell by $11.8 billion to $207.7 billion while goods imports rose by $10.9 billion to $313.4 billion, reversing the improvement seen in April.
  • Because the advance report covers goods only and is used by GDP nowcasters, the May swing is expected to prompt downward revisions to Q2 growth trackers before the full FT-900 release.
  • The decline in exports was broad-based, with pulls in industrial supplies and vehicles, while higher capital goods purchases helped push imports up.
  • The May reversal follows a sharp narrowing of the cumulative goods deficit earlier in 2026 as last year's tariff-driven import front-loading unwound, highlighting continued month-to-month volatility in trade flows.