America’s appetite for AI hardware just punched a $77.6 billion hole in the trade balance. The US trade deficit widened sharply in May, jumping from a revised $54.6 billion in April, as capital goods imports surged to record levels on the back of massive spending on semiconductors, computers, and data center equipment.
The Commerce Department released the data on June 26, and the picture it paints is striking. The goods-only deficit reached $105.8 billion, a 27.4% increase from the prior month and the largest gap since mid-2025.
The AI import machine
Capital goods imports surged 41.9% year-over-year. Total imports rose 3.6% to $313.4 billion, while exports moved in the opposite direction, falling 5.4% in May.
The import surge wasn’t limited to capital goods alone. Consumer goods and industrial supplies, including petroleum, also contributed to the widening gap.
