US trade deficit surges amid artificial intelligence spending boom
Imbalance soars to $77.6bn in May as imports outpaced exports, driven by pharmaceuticals and semiconductors.
The United States trade deficit has jumped to $77.6bn in May on rising imports, driven by goods that include pharmaceuticals, mobile phones and semiconductors.
Imports ticked up 3.3 percent from April to $395.3bn while exports fell 3.2 percent to $317.7bn, according to a report released on Tuesday by the US Department of Commerce’s Bureau of Economic Analysis and the Census Bureau.
Overall, the trade gap grew by 42.2 percent from the previous month to $77.6bn, marking the biggest jump in a year.
The surge came amid a boom in artificial intelligence spending across the economy. Notably, semiconductor imports jumped by $1.2bn.
In the oil and gas sector, petroleum imports jumped to their highest level on record despite the US-Israel war on Iran. Imports of crude oil increased by $1.5bn.
Imports of automotive parts and engines jumped by $2.2bn. Passenger car imports specifically increased by $1bn. The increases came as carmakers look to move stateside amid heightened pressure from tariffs.
Toyota announced it would invest $3.6bn in expanding its US auto production. The Japanese automaker said it will move production of its Tacoma pick-up truck to a plant in San Antonio, Texas, by 2030.
US President Donald Trump touted the move, calling it “a really big deal”, and said “tariffs at work” in a post on his social media platform, Truth Social.
The US posted its largest trade deficits in May with Vietnam ($20.6bn), Mexico ($20.1bn), Taiwan ($19.4bn), China ($14.5bn) and the European Union ($9.3bn) while its biggest trade surpluses were with the Netherlands ($9.1bn), Hong Kong ($5.6bn), South and Central America ($4.8bn), Australia ($1.9bn) and the United Kingdom ($1.4bn), according to the data.
Neighbouring Canada’s trade surplus widened for the fourth straight month, hitting a four-year high as goods shipped to the US reached their highest level since February 2025, according to Statistics Canada, which also released trade data on Tuesday.
Canada had a trade surplus of 4.24 billion Canadian dollars (US$2.98bn), marking a 0.9 percent increase from the month before.
Read the full story at Al Jazeera ↗
The US trade deficit expanded significantly in May to $77.6 billion, representing a 42.2% increase from April. Imports rose 3.3% to $395.3 billion while exports declined 3.2% to $317.7 billion. The increase was driven by imports of semiconductors, pharmaceuticals, automotive parts, and crude oil. Semiconductor imports specifically grew by $1.2 billion amid heightened artificial intelligence investment across the economy. Petroleum imports reached record levels. Automotive parts and engines saw a $2.2 billion increase, with passenger car imports up $1 billion as manufacturers shift production to the US. Vietnam, Mexico, and Taiwan accounted for the largest bilateral deficits. Canada's trade surplus widened to 4.24 billion Canadian dollars. Toyota announced plans to invest $3.6 billion in US production expansion.
Read the full story at Al Jazeera ↗
Imbalance soars to $77.6bn in May as imports outpaced exports, driven by pharmaceuticals and semiconductors.
The United States trade deficit has jumped to $77.6bn in May on rising imports, driven by goods that include pharmaceuticals, mobile phones and semiconductors.
Imports ticked up 3.3 percent from April to $395.3bn while exports fell 3.2 percent to $317.7bn, according to a report released on Tuesday by the US Department of Commerce’s Bureau of Economic Analysis and the Census Bureau.
Overall, the trade gap grew by 42.2 percent from the previous month to $77.6bn, marking the biggest jump in a year.
The surge came amid a boom in artificial intelligence spending across the economy. Notably, semiconductor imports jumped by $1.2bn.
In the oil and gas sector, petroleum imports jumped to their highest level on record despite the US-Israel war on Iran. Imports of crude oil increased by $1.5bn.
Imports of automotive parts and engines jumped by $2.2bn. Passenger car imports specifically increased by $1bn. The increases came as carmakers look to move stateside amid heightened pressure from tariffs.
Toyota announced it would invest $3.6bn in expanding its US auto production. The Japanese automaker said it will move production of its Tacoma pick-up truck to a plant in San Antonio, Texas, by 2030.
US President Donald Trump touted the move, calling it “a really big deal”, and said “tariffs at work” in a post on his social media platform, Truth Social.
The US posted its largest trade deficits in May with Vietnam ($20.6bn), Mexico ($20.1bn), Taiwan ($19.4bn), China ($14.5bn) and the European Union ($9.3bn) while its biggest trade surpluses were with the Netherlands ($9.1bn), Hong Kong ($5.6bn), South and Central America ($4.8bn), Australia ($1.9bn) and the United Kingdom ($1.4bn), according to the data.
Neighbouring Canada’s trade surplus widened for the fourth straight month, hitting a four-year high as goods shipped to the US reached their highest level since February 2025, according to Statistics Canada, which also released trade data on Tuesday.
Canada had a trade surplus of 4.24 billion Canadian dollars (US$2.98bn), marking a 0.9 percent increase from the month before.
Read the full story at Al Jazeera ↗
US trade deficit jumped to $77.6bn in May Imports rose 3.3% to $395.3bn; exports fell 3.2% to $317.7bn The 42.2% monthly increase marked the biggest jump in a year Semiconductor imports increased by $1.2bn amid AI spending boom Petroleum imports reached record levels Automotive parts and engines imports jumped $2.2bn Largest deficits were with Vietnam ($20.6bn), Mexico ($20.1bn), and Taiwan ($19.4bn) Toyota announced $3.6bn investment to expand US auto production including Tacoma truck relocation to Texas by 2030 The AI spending boom drove the trade deficit surge Trump's characterization of Toyota's move as evidence that 'tariffs at work'
Read the full story at Al Jazeera ↗
- US trade deficit reached $77.6bn in May, a 42.2% monthly jump driven by semiconductor, pharmaceutical, and automotive imports amid AI spending surge
- Imports rose 3.3% to $395.3bn while exports fell 3.2% to $317.7bn, with semiconductor imports alone jumping $1.2bn
- Largest trade deficits were with Vietnam ($20.6bn), Mexico ($20.1bn), and Taiwan ($19.4bn); petroleum imports hit record levels despite geopolitical tensions
- Toyota announced $3.6bn US expansion including Tacoma truck production move to Texas by 2030