The U.S. trade deficit widened to $77.6 billion in May, reaching its highest level in over a year.

U.S. media: The U.S. trade deficit in goods and services widened to $77.6 billion in May, reaching a new high in over a year. Imports surged 3.3% to a record $395.3 billion, while exports declined 3.2% to $317.7 billion.

The sharp rise in imports was primarily driven by strong demand for pharmaceuticals, smartphones, automobiles, and data center equipment. Meanwhile, exports of gold, natural gas, computers, and medicines declined, with only service exports and tourism revenues showing growth.

Despite the Trump administration's broad tariff hikes aimed at reducing the deficit, robust demand for AI-related technologies and foreign pharmaceuticals continues to sustain trade volumes. Since Trump returned to the White House 16 months ago, the monthly average trade deficit in goods has remained around $96 billion—down only about 5% from previous levels.

Additionally, the Iran conflict led to the closure of the Strait of Hormuz, disrupting supply chains. After the Supreme Court overturned global tariffs last year, the government is now preparing a new round of trade investigations under Section 301, aiming to restore previously imposed tariff levels.

Original article: toutiao.com/article/1870112164199424/

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