US goods trade deficit hits 14-month high in May as imports surge
Key takeaways
- US goods trade deficit hits 14-month high in May as imports surge FILE PHOTO: APM Terminals at the Port of Los Angeles, California, U.S., March 4, 2026.
- The sharp deterioration in the goods trade deficit reported by the Commerce Department on Friday also reflected a decline in exports.
- But after the United States and Iran last week signed a preliminary peace deal, shipments through the strait have picked up, driving oil prices sharply lower.
US goods trade deficit hits 14-month high in May as imports surge FILE PHOTO: APM Terminals at the Port of Los Angeles, California, U.S., March 4, 2026. REUTERS/Mike Blake/File Photo · Reuters By Lucia Mutikani Fri, June 26, 2026 at 9:52 PM GMT+7 3 min read By Lucia Mutikani
WASHINGTON, June 26 (Reuters) - The U.S. trade deficit in goods swelled to a 14-month high in May as businesses boosted imports, likely to avoid shortages and higher prices related to the Middle East conflict, suggesting trade remained a drag on economic growth in the second quarter.
The sharp deterioration in the goods trade deficit reported by the Commerce Department on Friday also reflected a decline in exports. Recent business surveys have shown front-loading of orders by firms. Sponsors of the surveys attributed the behavior to the U.S.-led war against Iran, which raised commodity prices, including for oil and fertilizers, and disrupted shipping in the Strait of Hormuz.