US trade deficit surges amid artificial intelligence spending boom

The United States experienced a significant widening of its trade imbalance in May, with the deficit climbing to $77.6 billion according to data released by the US Department of Commerce's Bureau of Economic Analysis and Census Bureau. The deterioration reflected a substantial increase in imports reaching $395.3 billion, while exports declined to $317.7 billion, representing a 42.2 percent month-over-month expansion of the trade gap.

The surge in imports was concentrated in technology-related goods, particularly semiconductors, which saw purchases jump by $1.2 billion as companies accelerated artificial intelligence investments across the economy. Beyond semiconductors, imports of pharmaceuticals and mobile phones also contributed significantly to the overall increase. In the energy sector, petroleum imports reached record levels, climbing by $1.5 billion despite geopolitical tensions in the Middle East.

Automotive sector imports also expanded notably, with automotive parts and engines jumping by $2.2 billion and passenger car imports increasing by $1 billion. This growth reflected efforts by carmakers to establish or expand US-based production in response to tariff pressures. Toyota exemplified this trend by announcing a $3.6 billion investment to relocate Tacoma pick-up truck production to San Antonio, Texas by 2030, a move that drew praise from US President Donald Trump as evidence of tariff effectiveness.

Geographically, the United States ran its largest trade deficits with Vietnam at $20.6 billion, Mexico at $20.1 billion, Taiwan at $19.4 billion, China at $14.5 billion, and the European Union at $9.3 billion. Meanwhile, Canada's trade position strengthened, with its surplus widening to 4.24 billion Canadian dollars for the fourth consecutive month, reaching a four-year high as exports to the United States climbed to their highest level since February 2025.