US trade deficit widens to $77.6B in May as imports surge and exports slide

The US trade gap ballooned to $77.6 billion in May, a 42.2% jump from April’s revised $54.6 billion figure.

The Commerce Department’s Bureau of Economic Analysis and the Census Bureau published the data on July 7, painting a picture of an economy that’s buying a lot more from the rest of the world while selling considerably less. It’s the largest trade deficit since March 2025, and it carries real implications for GDP, the dollar, and by extension, crypto markets.

What’s driving the gap

Imports climbed 3.3% to $395.3 billion in May. The main culprit: capital goods, which set a record at $128 billion. Think AI-related equipment, data center components, and the kind of heavy-duty tech infrastructure that companies are racing to build out.

On the other side of the equation, exports fell 3.2% to $317.7 billion. The decline hit multiple sectors: gold, natural gas, computers, and pharmaceuticals all saw weaker numbers. Falling prices played a role alongside softer demand, creating a double headwind for American sellers abroad.