US Trade Deficit Climbs in May Vietnam is Top Exporter

[ABS News Service/08.07.2026]

The US trade deficit climbed dramatically in May to $77.6 billion in May, a $23 billion increase from the $54.6 billion recorded in April, the Commerce Department reported yesterday.

US exports fell in May to $317.7 billion, $10.5 billion less than April exports. Meanwhile, imports hit $395.3 billion, a $12.5 billion rise over April.

The May increase in the goods and services deficit reflected an increase in the goods deficit of $23.6 billion to $106.5 billion and an increase in the services surplus of $600 million to $28.9 billion.

Year-to-date, the goods and services deficit decreased $203.9 billion, or 40.6 percent, from the same period in 2025. Exports increased $164.7 billion or 11.7 percent, while imports fell by $39.2 billion or 2.1 percent.

The average goods and services deficit increased $7.5 billion to $62.9 billion for the three months ending in May.

Exports of goods dropped by $11.3 billion to $210.6 billion in May, while services exports were up by $800 million to $107.1 billion in May. Goods imports rose by $12.3 billion to $317.0 billion and services imports were up by $200 million to $78.2 billion.

In May, the United States recorded trade deficits with Vietnam at $20.6 billion, Mexico $20.1 billion, Taiwan $19.4 billion, China $14.5 billion, European Union $9.3 billion, Canada $7 billion, Germany $5.7 billion, Malaysia $4.7 billion, South Korea $4.4 billion, India $4.1 billion, Ireland $4 billion, Italy $2.9 billion, Switzerland $2.3 billion, Japan $2 billion, France $1.5 billion and Israel $400 million.

Surpluses were recorded with Netherlands at $9.1 billion, Hong Kong $5.6 billion, South and Central America $4.8 billion, Australia $1.9 billion, United Kingdom $1.4 billion, Brazil $1.1 billion, Singapore $900 million, Belgium $700 million and Saudi Arabia $300 million.