News Flash

Published on July 7, 2026 at 8:39 AM

The official U.S. International Trade Deficit widened sharply to $77.6 billion in May, a massive 42.2% surge from the revised $54.6 billion deficit recorded in April. 

The U.S. Bureau of Economic Analysis (BEA) and Census Bureau report shows that a sharp drop in nominal exports combined with surging import demand drove the gap significantly wider. 

📉 Breakdown of the Final Numbers

  • Total Imports: Swelled by 3.3% to $395.3 billion.
  • Total Exports: Shrank by 3.2% to $317.7 billion.
  • The Goods Deficit: Jumped by $23.6 billion to reach $106.5 billion. This was driven heavily by an $11.6 billion plunge in merchandise exports, notably dragged down by an exit of nonmonetary gold (-$6.2B) and industrial supplies (-$5.5B).
  • The Services Surplus: Offered a minor offset, increasing by $0.6 billion to $28.9 billion.

Major Trading Partner Gaps (Deficits)

  • Vietnam: $20.6 billion
  • Mexico: $20.1 billion (widened by $5.3B from April)
  • Taiwan: $19.4 billion
  • China: $14.5 billion 

Would you like to check how U.S. Treasury yields or the stock market are reacting to this freshly released data?

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