Overview
- The Bureau of Economic Analysis and Census Bureau confirmed on Tuesday, July 7, 2026, that the U.S. goods‑and‑services deficit rose to $77.6 billion in May with imports at $395.3 billion and exports at $317.7 billion.
- The goods deficit was the main factor, jumping about $23.6 billion to roughly $106.5 billion in May largely because of higher imports of pharmaceuticals, electronics, crude oil, passenger vehicles and rising shipments of AI‑related hardware.
- An advance goods‑only report released June 26 had already signaled the deterioration with a goods deficit near $105.8 billion, showing the full release mainly confirmed earlier warnings rather than arriving as a surprise.
- Detailed bilateral flows show growing deficits with partners such as Mexico, Vietnam and China while surplus pockets appeared with the Netherlands and Hong Kong, and Canada reported a separate C$4.24 billion merchandise surplus for May led by higher exports to the United States.
- Economists say the May swing is likely to subtract from Q2 GDP and could prompt downward revisions to growth trackers; policymakers and markets will watch June trade data, tariff‑related front‑loading and energy flow changes for signs this is a trend or a one‑month spike.