U.S. May Goods Trade Deficit Jumps 27.4% to $105.8 Billion as Exports Fall, Imports Rise
Updated
Updated · continuumeconomics.com · Jun 26
U.S. May Goods Trade Deficit Jumps 27.4% to $105.8 Billion as Exports Fall, Imports Rise
3 articles · Updated · continuumeconomics.com · Jun 26
Summary
$105.8 billion marked the widest U.S. advance goods trade gap since July 2025, far worse than the $85.0 billion expected and likely to drag on Q2 GDP estimates.
Exports fell $11.8 billion to $207.7 billion in May, with declines in four of six categories led by a 9.2% drop in consumer goods; imports rose $10.9 billion to $313.4 billion, increasing across all six categories.
The report suggests earlier post-tariff improvement in the deficit has likely run its course, with exports correcting and imports staying firm after the Supreme Court cut tariffs.
May inventories offered only limited support: wholesale stocks rose 0.3% and retail inventories 0.6%, unlikely to offset the trade hit even after Q1 GDP was revised up on stronger net exports.