U.S. goods trade deficit hits 14-month high as imports surge

The U.S. goods trade deficit jumped to a 14-month high in May as companies rushed to bring in imports before shortages and higher costs tied to the Middle East conflict hit.

The Census Bureau said the advance international trade-in-goods deficit reached $105.8 billion in May, up $22.7 billion from $83.0 billion in April. Goods exports fell to $207.7 billion, down $11.8 billion from the prior month, while goods imports climbed to $313.4 billion, up $10.9 billion and the highest since March 2025. The May deficit was 27.4% larger than April’s and came in well above the $85.0 billion economists had expected.

Businesses ordered early to get ahead of possible disruption in shipping and commodity markets, especially around the Strait of Hormuz, where traffic had been clouded by the conflict involving the United States and Iran. Prices for oil and fertilizers rose as the risk of disruption spread, encouraging firms to stockpile supplies and add to inventory cushions before costs climbed further.

Even as shipments through the Strait of Hormuz picked up after a preliminary peace deal between Washington and Tehran, the May numbers captured the earlier scramble to move goods sooner.

A fuller picture of trade will arrive with the U.S. goods and services report scheduled for Tuesday, July 7. In April, the overall U.S. goods-and-services deficit was $55.9 billion, slightly narrower than the revised $56.6 billion in March.

Capital-goods imports, including computers, semiconductors and telecommunications equipment, rose nearly 42% from a year earlier. A Minneapolis Federal Reserve analysis published in May found imports tied to the AI boom had more than doubled since 2023, while non-AI imports fell.