Overview
- The Commerce Department released data on Tuesday, July 7, showing the U.S. goods-and-services deficit jumped to $77.6 billion as imports rose 3.3% to $395.3 billion and exports fell 3.2% to $317.7 billion.
- Goods alone drove the swing, with the monthly goods deficit surging to roughly $106 billion as capital-goods imports for semiconductors and data-center AI hardware and larger consumer-goods shipments grew sharply.
- Analysts say the May shift will likely pull down second-quarter GDP tracking because net exports subtract from headline growth when imports outpace exports.
- Bilateral flows were uneven in May, with the largest U.S. deficits versus Vietnam, Mexico, Taiwan, China and the EU and notable surpluses with the Netherlands, Hong Kong and parts of South and Central America.
- Canada’s merchandise surplus hit a four-year high in May as exports to the U.S. and higher commodity values — partly linked to earlier Middle East shipping disruptions — boosted its trade balance, highlighting the region-level supply and price effects shaping current trade patterns.