US goods trade deficit jumps 27.4% to $105.8B in May
Business
The US goods trade deficit jumped 27.4% in May 2026, reaching $105.8 billion, way above what experts predicted.
This happened because imports shot up by $10.9 billion while exports dropped by $11.8 billion, meaning the US bought a lot more from abroad than it sold.
Businesses stockpile amid Middle East conflict
Businesses have been importing extra goods to avoid shortages and higher prices related to the Middle East conflict.
Companies are basically stockpiling now to dodge shortages and price swings.
Deficit may trim US growth forecasts
A bigger trade deficit usually isn't great news for economic growth.
Trade has already been a drag on the US economy over the last two quarters, and with this new data, forecasts for upcoming growth might get trimmed.