U.S. President Trump initiated a tariff war against all of his trade partners in April last year, which could be considered a complete waste of time.
According to Bloomberg, US Commerce Department trade data showed that the US trade deficit expanded to $77.6 billion in May this year, an increase of 42.2% compared to April, reaching the highest level since March 2025.
Affected by declining exports and increased imports, the trade imbalance in the United States has further worsened. Before the data was released, markets expected the U.S. to have a trade deficit of $7.84 billion in May.
Data shows that in May, U.S. exports decreased by 3.2% month-over-month, mainly due to a reduction in exports of gold for non-monetary purposes, which experienced significant fluctuations. On the other hand, imports increased by 3.3% month-over-month, with growth seen in several categories.
On April 2, 2025, Trump displayed an administrative order with his signature during a tariff announcement at the White House Rose Garden. Visual China
Reports and analyses suggest that this widening trade deficit occurred in a special context: Over the past few months, exports of oil and petroleum products from the United States have grown due to factors such as the Iran war, which to some extent offset the impact of continuous increases in imports. At the same time, with the large-scale construction of data centers in the United States, imports of related capital goods have also continued to increase.
According to a report by the U.S. Department of Commerce, oil exports continued to grow in May. However, latest weekly data from the U.S. Energy Information Administration (EIA) shows that as of June 26, U.S. exports of oil and petroleum products have largely returned to pre-war levels.
In terms of import patterns, imports of computer components and semiconductors in the United States increased again in May, while imports of computers and telecommunications equipment decreased.
Recent surveys by purchasing managers indicate that American companies may also be stockpiling goods in advance to cope with the risks of supply chain disruptions caused by wars and the pressure of future price increases. This further increases the demand for imports.
Bloomberg mentioned that these trade data will help economists assess the performance of the United States' Gross Domestic Product (GDP) in the second quarter. Before the data was released, the GDP Now model from Atlanta Federal Reserve predicted that US net exports would drag down GDP growth by 1.62 percentage points in the second quarter, a significantly larger decline than the 0.37 percentage points seen in the first quarter.
According to American media, although several tariff measures promoted by the Trump administration were overturned by the U.S. Supreme Court earlier this year, the U.S. government is still seeking other ways to impose taxes on imported goods.
In addition, the United States recently decided to no longer renew its trade agreements with Canada and Mexico, but instead to conduct reviews annually. This change may increase the uncertainty faced by businesses in the coming months.
In May, the United States had widening trade deficits with Mexico and Canada. The trade deficit with China also increased significantly, and the trade deficit with Vietnam also expanded.
In terms of tourism service exports, the amount spent by foreign tourists in the United States increased slightly in May. With the official start of the World Cup, related tourism demand is expected to support US trade in tourism services.
