US trade deficit widens in May as Trump tariffs fuel uncertainty

The Sun

10 hours ago

WASHINGTON: The US trade deficit widened more than expected in May, government data showed Thursday, with both imports and exports declining as US President Donald Trump's tariffs sent shock waves through the economy and snagged supply chains.
The world's biggest economy logged an overall trade gap of $71.5 billion, in the month after Trump imposed a 10 percent duty on most trading partners before pausing steeper rates for dozens of these economies.
This was an expansion from the $60.3 billion deficit in April, according to Commerce Department data.
The figures, however, came as both imports and exports shrank in May.
US imports were down 0.1 percent to $350.5 billion, as incoming shipments of goods ticked down.
Imports of consumer goods dropped by $4.0 billion, with those of apparel and toys both sliding, although imports of autos and parts climbed.
US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed.
While Trump pulled back on some of his harshest tariff measures in April, he doubled down on levies impacting goods from China.
Tit-for-tat tariffs between Washington and Beijing surged to triple-digits around the time, a level described as a trade embargo as businesses halted shipments to wait for both governments to ease tensions.
This could have dented imports of certain consumer goods before United States and Chinese officials eventually came to a pact in mid-May to temporarily lower these tariffs. – AFP