US trade deficit widens as imports from China surge by over $1B

The US trade deficit expanded in May, driven by a significant decrease in exports relative to imports, coupled with higher imports from China and Mexico.

The US trade deficit, including goods and services, reached $75.1 billion in May, marking a 0.8% increase from the previous month, the US Bureau of Economic Analysis (BEA) reported on July 3.

US exports declined by $1.8 billion to $261.7 billion on a month-on-month (MoM) basis, while imports decreased by $1.2 billion MoM to $336.7 billion.

The trade deficit with China grew by $1.9 billion to $23.9 billion in May, with US exports to Beijing decreasing by $500 million to $11.7 billion. Imports rose by $1.3 billion to $35.6 billion.

Additionally, the trade deficit with Mexico increased by $1.3 billion to $14.1 billion, while the deficit with Ireland narrowed by $3 billion to $5.7 billion.