Trade Gap Ends May 28 Percent Above 12-Month Average, Largest Gap Since March 2025

WASHINGTON, DC – Today, the Joint Economic Committee released its analysis of the latest Monthly Trade Update based on information compiled from the Bureau of Economic Analysis, U.S. Census Bureau, Treasury Department, and the Bureau of Labor Statistics. The total trade deficit in May was $77.58 billion, up $23.02 billion from April and 28 percent above the 12-month average. This is the largest trade gap since March of 2025 as exports fell and imports rose.

In trade of goods, the U.S. ran a trade deficit of $106.48 billion, up $23.57 billion from April and 20 percent above the 12-month average. In trade of services, the U.S. ran a trade surplus of $28.90 billion, up $557 million from April and 3 percent above the 12-month average.

Over the 12 months through May 2026:

• The U.S. ran a total trade deficit of $728.02 billion. In trade of goods, the U.S. ran a trade deficit of $1.06 trillion. In trade of services, the U.S. ran a trade surplus of $336.00 billion. Total exports were $3.59 trillion while total imports were $4.32 trillion.

• The U.S. had the largest goods trade deficits with Vietnam, with net exports of -$203.85 billion, 19.76 percent of the total goods trade deficit; Mexico, with net exports of -$199.18 billion, 19.31 percent of the total goods trade deficit; and Taiwan, with net exports of -$194.38 billion, 18.84 percent of the total goods trade deficit.

• The U.S. had the largest goods trade surpluses with Netherlands, with net exports of $75.57 billion, -7.33 percent of the total goods trade deficit; United Kingdom, with net exports of $44.48 billion, -4.31 percent of the total goods trade deficit; and Hong Kong, with net exports of $41.23 billion, -4.00 percent of the total goods trade deficit.

• The most exported goods by value were civilian aircraft, engines, equipment, and parts; nonmonetary gold; and pharmaceutical preparations. Together, these goods accounted for 17.54 percent of the value of all exported goods over those 12 months.

• The U.S. exported the most to Mexico ($358.90 billion), Canada ($333.70 billion), and United Kingdom ($108.08 billion). Together, these countries accounted for 34.63 percent of the value of all U.S. exports over those 12 months.

• The most imported goods by value were computers; pharmaceutical preparations; and computer accessories. Together, these goods accounted for 19.83 percent of the value of all imported goods over those 12 months.

• The U.S. imported the most from Mexico ($558.08 billion), Canada ($377.10 billion), and China ($264.13 billion). Together, these countries accounted for 35.87 percent of the value of all U.S. imports over those 12 months.

In May 2026, the U.S. calculated $21.03 billion in import duties, which is 15.02 percent lower than the 12-month average. Over the 12 months through May 2026, the U.S. calculated $296.97 billion in import duties. In May 2026, the average applied duty rate, defined as calculated duty revenue as a share of total imports for consumption, was 6.89 percent, which is 2.16 percentage points lower than the 12-month average.

The U.S. dollar lost ground with three of the five leading global currencies. From May 2025 to May 2026, the U.S. dollar weakened against the Chinese yuan by 6 percent, the Euro by 2.1 percent, and the Mexican peso by 9.8 percent. The dollar strengthened against the British pound by 0.5 percent, and against the Japanese yen by 11.5 percent. A stronger U.S. dollar can improve U.S. Terms of Trade (ToT) with trading partners by lowering the dollar price of imports from the foreign country. Terms of trade (ToT) is the ratio of a country’s export prices to its import prices. Stronger ToT means a country can buy more imports for a given amount of exports. 

For the full update, with greater detail of the U.S. exports, imports, duties, and trading partners, visit https://www.jec.senate.gov/public/index.cfm/republicans/trade-update/. 

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