Particle.news
Download on the App Store

U.S. Trade Deficit Jumps 42% as Exports Fall and Oil Shipments Reach Records

Middle East supply disruptions appear to have reversed a prior export gain that widened the trade gap.

Overview

  • The U.S. goods-and-services trade deficit rose 42.2% in May to $77.585 billion as imports climbed and exports fell.
  • Imports increased 3.3% to $395.263 billion while exports declined 3.2% to $317.677 billion, according to the Commerce Department.
  • Crude oil and petroleum-product exports hit record highs after alternate procurement replaced disrupted Middle Eastern supplies through the Strait of Hormuz.
  • Exports to Japan also set a record in May even as bilateral goods deficits remained largest with Mexico, Vietnam and Taiwan and the deficit with China widened.
  • The May data mark the first monthly widening of the deficit in two months and could affect U.S. current-account flows and GDP components if the trends continue.