The United States trade deficit has jumped to $77.6bn in May on rising imports, driven by goods that include pharmaceuticals, mobile phones and semiconductors.
Imports ticked up 3.3 percent from April to $395.3bn while exports fell 3.2 percent to $317.7bn, according to a report released on Tuesday by the US Department of Commerce’s Bureau of Economic Analysis and the Census Bureau.
Overall, the trade gap grew by 42.2 percent from the previous month to $77.6bn, marking the biggest jump in a year.
The surge came amid a boom in artificial intelligence spending across the economy. Notably, semiconductor imports jumped by $1.2bn.
In the oil and gas sector, petroleum imports jumped to their highest level on record despite the US-Israel war on Iran. Imports of crude oil increased by $1.5bn.
Imports of automotive parts and engines jumped by $2.2bn. Passenger car imports specifically increased by $1bn. The increases came as carmakers look to move stateside amid heightened pressure from tariffs.
Toyota announced it would invest $3.6bn in expanding its US auto production. The Japanese automaker said it will move production of its Tacoma pick-up truck to a plant in San Antonio, Texas, by 2030.
US President Donald Trump touted the move, calling it “a really big deal”, and said “tariffs at work” in a post on his social media platform, Truth Social.
-Al Jazeera/Reuters
