Background

The monthly U.S. trade deficit in goods and services soared 42.2 percent from April to May as imports climbed while exports fell. Deficits with Malaysia, Mexico, and Vietnam hit records as imports from those countries grew to all-time highs, while the deficit with Japan dropped to a record low amid unprecedented exports to that country.

Imports of $395.3 billion in May were up 3.3 percent from April. Imports of goods jumped 4.0 percent to $317.0 billion, with increases of $1.9 billion for pharmaceutical preparations, $1.5 billion for crude oil, and $1.0 billion each for household goods and passenger cars, along with a decrease of $3.4 billion for computers. Services imports edged up 0.3 percent to $78.2 billion.

Exports were down 3.2 percent to $317.7 billion in May. Exports of goods tumbled 5.1 percent to $210.6 billion, with decreases of $6.2 billion for non-monetary gold, $2.1 billion for computers, and $2.0 billion each for computer accessories and crude oil. Services exports moved up 0.8 percent to $107.1 billion.

The monthly U.S. trade deficit increased from $54.6 billion in April to $77.6 billion in May. The deficit in goods trade was up 28.5 percent to $106.5 billion while the services trade surplus gained 2.1 percent to $28.9 billion.

Year-to-date, the trade deficit in May was down 40.6 percent from a year earlier as imports fell 2.1 percent and exports increased 11.7 percent.

For the month of May, trade deficits and surpluses with major trading partners were as follows.

Country/region

Deficit

% Change

Surplus

% Change

Vietnam

$20.6 billion

+6.7

 

 

Mexico

$20.1 billion

+35.8

 

 

Taiwan                  

$19.4 billion

+0.5

 

 

China

$14.5 billion

+20.8

 

 

European Union

$9.3 billion

+29.2

 

 

Canada

$7.0 billion

+12.9

 

 

Germany

$5.7 billion

+1.8

 

 

Malaysia

$4.7 billion

+80.8

 

 

South Korea

$4.4 billion

-6.4

 

 

India

$4.1 billion

+70.8

 

 

Ireland

$4.0 billion

+37.9

 

 

Italy

$2.9 billion

+26.1

 

 

Switzerland

$2.3 billion

Shift from $4.4 billion surplus

 

 

Japan

$2.0 billion

-28.6

 

 

France

$1.5 billion

-37.5

 

 

Israel

$0.4 billion

Shift from $0.1 billion surplus

 

 

Netherlands

 

 

$9.1 billion

+7.1

Hong Kong

 

 

$5.6 billion

-8.2

South/Central America

 

 

$4.8 billion

-38.5

Australia

 

 

$1.9 billion

-9.5

United Kingdom

 

 

$1.4 billion

-46.2

Brazil

 

 

$1.1 billion

-50.0

Singapore

 

 

$0.9 billion

-71.0

Belgium

 

 

$0.7 billion

-50.0

Saudi Arabia

 

 

$0.3 billion

Shift from $0.1 billion deficit

 

Copyright © 2026 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.

ST&R: International Trade Law & Policy

Since 1977, we have set the standard for international trade lawyers and consultants, providing comprehensive and effective customs, import and export services to clients worldwide.

View Our Services 

Close

Cookie Consent

We have updated our Privacy Policy relating to our use of cookies on our website and the sharing of information. By continuing to use our website or subscribe to our publications, you agree to the Privacy Policy and Terms & Conditions.