The United States trade deficit surged to $77.6 billion in May, a 42.2% increase from April, marking the largest monthly jump in a year. Imports rose 3.3% to $395.3 billion, while exports fell 3.2% to $317.7 billion, according to data released Tuesday by the U.S. Department of Commerce’s Bureau of Economic Analysis and the Census Bureau.

The spike was driven by a boom in artificial intelligence spending, with semiconductor imports rising by $1.2 billion. In the oil and gas sector, petroleum imports hit a record high, with crude oil imports increasing by $1.5 billion despite the ongoing US-Israel conflict with Iran.

Imports of automotive parts and engines jumped by $2.2 billion, and passenger car imports rose by $1 billion, as automakers move production stateside amid tariff pressures. Toyota announced a $3.6 billion investment to expand its U.S. auto production, moving Tacoma pickup truck production to San Antonio, Texas, by 2030.

U.S. President Donald Trump touted the move as “a really big deal” and posted “tariffs at work” on Truth Social. The largest trade deficits were with Vietnam ($20.6 billion), Mexico ($20.1 billion), Taiwan ($19.4 billion), China ($14.5 billion), and the European Union ($9.3 billion).

Canada’s trade surplus widened for the fourth consecutive month, hitting a four-year high as goods shipped to the U.S. reached their highest level since February 2025. Statistics Canada reported a surplus of 4.24 billion Canadian dollars ($2.98 billion USD), a 0.9% increase from the previous month.

Source: www.aljazeera.com