US Trade Deficit Rises to $77.6 Billion in May

The United States trade deficit widened sharply in May, reaching $77.6 billion as imports outpaced exports for the first time in over a year. The figure, released by the U.S. Census Bureau, marks the largest monthly imbalance since the pandemic‑era lows in 2020. Imports rose 7.7 % to $1.13 trillion, while exports slipped 1.8 % to $1.05 trillion, pushing the gap to a record high.

Pharmaceuticals and semiconductors were the main drivers of the surge. U.S. imports of prescription drugs climbed 12.3 % year‑over‑year, reflecting higher demand for specialty medicines and a tightening supply chain. Semiconductor imports grew 9.4 %, as global chip shortages and the continued shift toward electric vehicles and advanced electronics increased demand for advanced chips. In contrast, U.S. exports of these goods fell modestly, with pharmaceuticals down 1.5 % and semiconductors down 2.1 %.

Economists say the widening deficit may pressure the dollar and prompt further policy adjustments. The Commerce Department will review the data in its upcoming trade policy briefing, while industry groups call for measures to boost domestic manufacturing and reduce reliance on foreign supply chains. The trade balance remains a key indicator of the U.S. economy’s resilience amid global supply disruptions and shifting geopolitical dynamics.