US trade deficit grew in May

In May of this year, the United States' trade deficit increased substantially, reaching $71.5 billion. This growth became possible due to a significant drop in export volumes, despite the observed slowdown in import growth rates.

According to data from the Bureau of Economic Analysis of the US Department of Commerce, exports fell by 4%, while imports decreased by just 0.1%. A $10 billion decline in exports of manufactured goods and raw materials became the primary reason for the trade balance deterioration.

The tariffs imposed by the Trump administration continue putting pressure on import flows, forcing both companies and ordinary citizens to stockpile goods before price increases. As economists surveyed by Reuters note, the distortions caused by trade measures will continue affecting statistics for an extended period. Meanwhile, the drop in imports of consumer goods, including textiles and toys, was offset by increased imports of automobiles and computers.

The current situation creates difficulties for forecasting economic growth in the second quarter. However, experts anticipate some improvement in GDP figures following its 0.5% annualized decline in the first quarter.