US Trade Deficit Widens in May

Bureau of Economic Analysis reports that in May 2025, the US goods and services trade deficit increased to $71.5 billion, up $11.3 billion from April, driven by a $11.2 billion rise in the goods deficit to $97.5 billion and a slight decrease in the services surplus to $26.0 billion. Exports fell by $11.6 billion to $279.0 billion, primarily due to declines in industrial supplies, such as non-monetary gold and natural gas. Meanwhile, imports decreased by $0.3 billion to $350.5 billion, with mixed changes across consumer goods, automotive products, and technology items. Year-to-date, the trade deficit has grown by over 50%, as imports outpaced exports. Regionally, the US ran significant deficits with the European Union, Mexico, Vietnam, and China, though the deficit with China shrank notably by $5.7 billion. They write:

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $71.5 billion in May, up $11.3 billion from $60.3 billion in April, revised.

Exports, Imports, and Balance (exhibit 1)

May exports were $279.0 billion, $11.6 billion less than April exports. May imports were $350.5 billion, $0.3 billion less than April imports.

The May increase in the goods and services deficit reflected an increase in the goods deficit of $11.2 billion to $97.5 billion and a decrease in the services surplus of $0.1 billion to $26.0 billion.

Year-to-date, the goods and services deficit increased $175.0 billion, or 50.4 percent, from the same period in 2024. Exports increased $73.6 billion or 5.5 percent. Imports increased $248.7 billion or 14.8 percent.

Three-Month Moving Averages (exhibit 2)

The average goods and services deficit decreased $16.8 billion to $90.0 billion for the three months ending in May.

• Average exports increased $0.1 billion to $283.5 billion in May.
• Average imports decreased $16.7 billion to $373.6 billion in May.

Year-over-year, the average goods and services deficit increased $18.8 billion from the three months ending in May 2024.

• Average exports increased $17.9 billion from May 2024.
• Average imports increased $36.6 billion from May 2024.

Exports (exhibits 3, 6, and 7)

Exports of goods decreased $11.4 billion to $180.2 billion in May.

Exports of goods on a Census basis decreased $10.8 billion.

• Industrial supplies and materials decreased $10.0 billion.
  • Nonmonetary gold decreased $5.5 billion.
  • Natural gas decreased $1.1 billion.
  • Finished metal shapes decreased $1.0 billion.
• Capital goods decreased $1.9 billion.
  • Semiconductors decreased $0.6 billion.
  • Civilian aircraft engines decreased $0.5 billion.
  • Telecommunications equipment decreased $0.4 billion.
  • Computer accessories increased $0.8 billion.
• Consumer goods increased $1.5 billion.
  • Pharmaceutical preparations increased $1.1 billion.

Net balance of payments adjustments decreased $0.6 billion.

Treatment of Gold in BEA’s International and National Economic Accounts

When incorporating the statistics in this release into BEA’s National Economic Accounts, including Gross Domestic Product, or GDP, BEA replaces exports and imports of nonmonetary gold with an adjustment calculated as the difference between domestic production and industrial use of gold. For additional information, see “How are exports and imports of gold recorded in BEA’s International Economic Accounts?” and “How are exports and imports of nonmonetary gold treated in BEA’s National Economic Accounts?”.

Exports of services decreased $0.2 billion to $98.8 billion in May.

• Travel decreased $0.3 billion.
• Transport decreased $0.2 billion.
• Charges for the use of intellectual property increased $0.1 billion.
• Other business services increased $0.1 billion.

Imports (exhibits 4, 6, and 8)

Imports of goods decreased $0.2 billion to $277.7 billion in May.

Imports of goods on a Census basis decreased $0.3 billion.

• Consumer goods decreased $4.0 billion.
  • Other textile apparel and household goods decreased $0.8 billion.
  • Toys, games, and sporting goods decreased $0.7 billion.
  • Pharmaceutical preparations increased $2.5 billion.
• Industrial supplies and materials decreased $0.9 billion.
  • Finished metal shapes decreased $1.7 billion.
  • Nuclear fuel materials increased $0.6 billion.
• Automotive vehicles, parts, and engines increased $3.4 billion.
  • Passenger cars increased $3.1 billion.
• Other goods increased $1.0 billion.
• Capital goods increased $0.3 billion.
  • Computers increased $4.4 billion.
  • Computer accessories decreased $2.8 billion.

Net balance of payments adjustments increased $0.1 billion.

Imports of services decreased $0.1 billion to $72.8 billion in May.

• Transport decreased $0.4 billion.
• Travel decreased $0.2 billion.
• Other business services increased $0.1 billion.
• Maintenance and repair services increased $0.1 billion.

Real Goods in 2017 Dollars – Census Basis (exhibit 11)

The real goods deficit increased $8.1 billion, or 9.6 percent, to $92.5 billion in May, compared to a 12.3 percent increase in the nominal deficit.

• Real exports of goods decreased $8.2 billion, or 5.3 percent, to $148.3 billion, compared to a 5.7 percent decrease in nominal exports.
• Real imports of goods decreased $0.1 billion, or 0.1 percent, to $240.8 billion, compared to a 0.1 percent decrease in nominal imports.

Revisions

Revisions to April exports

• Exports of goods were revised up $1.1 billion.
• Exports of services were revised up $0.1 billion.

Revisions to April imports

• Imports of goods were revised down less than $0.1 billion.
• Imports of services were revised down $0.2 billion.

Goods by Selected Countries and Areas: Monthly – Census Basis (exhibit 19)

The May figures show surpluses, in billions of dollars, with Netherlands ($4.8), Hong Kong ($3.6), South and Central America ($3.3), Switzerland ($3.3), United Kingdom ($3.0), Australia ($1.5), Brazil ($0.5), Saudi Arabia ($0.5), Belgium ($0.4), Singapore ($0.3), and Israel ($0.1). Deficits were recorded, in billions of dollars, with European Union ($22.5), Mexico ($17.1), Vietnam ($14.9), China ($14.0), Ireland ($11.8), Taiwan ($11.5), Germany ($6.8), Japan ($5.8), South Korea ($5.4), India ($5.1), Canada ($2.8), Italy ($2.6), Malaysia ($2.4), and France ($0.5).

• The deficit with Mexico increased $3.6 billion to $17.1 billion in May. Exports decreased $0.3 billion to $27.5 billion and imports increased $3.3 billion to $44.6 billion.
• The deficit with Ireland increased $2.4 billion to $11.8 billion in May. Exports increased $0.2 billion to $1.6 billion and imports increased $2.5 billion to $13.4 billion.
• The deficit with China decreased $5.7 billion to $14.0 billion in May. Exports decreased $1.7 billion to $6.9 billion and imports decreased $7.4 billion to $20.9 billion.

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