Overview
- U.S. trade data for May show the deficit widened to $77.6 billion as imports rose 3.3% to $395.3 billion and exports fell 3.2% to $317.7 billion.
- Imports of computer accessories and semiconductors are about 42% higher year-on-year, which analysts link to sustained demand for AI hardware.
- Pharmaceutical imports climbed and may reflect firms bringing shipments forward ahead of a planned 100% tariff on certain drugs set to take effect on July 31.
- The tariff picture remains unsettled after the U.S. Supreme Court struck down many prior duties in late February and the administration imposed a new 10% special tariff while preparing additional surcharges.
- The administration points to corporate moves such as Toyota’s announced $3.6 billion shift of Tacoma production to Texas as evidence of policy effects even though those investments do not by themselves resolve the wider trade imbalance.