US trade deficit widens to $77.6 billion in May

The US trade deficit widened sharply to $77.6 billion in May from a revised $54.6 billion in April, the largest gap since March 2025. A goods-only deficit of $105.8 billion, released by the Commerce Department on June 26, underscored the deterioration as imports of capital goods climbed to record levels. Total imports rose 3.6% to $313.4 billion while exports fell 5.4% in May, with capital goods imports up 41.9% from a year earlier. The increase was linked to heavy spending on semiconductors, computers and data center equipment, while consumer goods and industrial supplies including petroleum also added to the widening gap. The figures point to a potentially larger drag from net exports on second-quarter GDP than in the first quarter, since trade subtracts from growth when imports outpace exports. The data may also complicate the Federal Reserve's policy outlook: weaker growth could support the case for rate cuts, while a wider deficit tied to higher import costs could keep inflation concerns in focus. For tech and crypto markets, the report highlights the scale of US spending on the hardware behind the AI buildout. Companies involved in semiconductors, computing infrastructure and related supply chains sit at the center of that investment wave, even though the trade data did not draw a direct link to digital assets or blockchain activity.