{"slug": "us-trade-deficit-widens-sharply-in-may-as-capital-goods-imports-hit-record-high", "title": "US trade deficit widens sharply in May as capital goods imports hit record high", "summary": "The U.S. trade deficit widened sharply in May, jumping 42.2% to $77.6 billion, as an AI investment boom drove imports of capital goods to a record high of $128.0 billion. Exports fell 3.2% to $317.7 billion, though petroleum shipments hit a record. The widening gap suggests trade remained a drag on GDP in the second quarter.", "body_md": "WASHINGTON, July 7 (Reuters) - The U.S. trade deficit widened sharply in May as an artificial intelligence investment boom helped to drive imports of capital goods to a record high, suggesting that trade remained a drag on gross domestic product in the second quarter.\n\nThe trade gap jumped 42.2% to $77.6 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday. Economists polled by Reuters had forecast the deficit at $78.5 billion.\n\nImports increased 3.3% to $395.3 billion, with imports of capital goods soaring to a record high $128.0 billion.\n\nBusinesses are spending heavily on AI, whose buildup is heavily reliant on imports. Exports dropped 3.2% to $317.7 billion, though shipments of petroleum were the highest on record amid the Middle East conflict. The U.S. is a net oil exporter.\n\nTrade has subtracted from GDP for two straight quarters. The Atlanta Federal Reserve's model is currently forecasting GDP increasing at a 1.2% annualized rate in the second quarter. The economy grew at a 2.1% pace in the January-March quarter.\n\n(Reporting By Lucia Mutikani; Editing by Andrea Ricci)", "url": "https://wpnews.pro/news/us-trade-deficit-widens-sharply-in-may-as-capital-goods-imports-hit-record-high", "canonical_source": "https://ca.finance.yahoo.com/news/us-trade-deficit-widens-sharply-125745600.html", "published_at": "2026-07-07 12:57:45+00:00", "updated_at": "2026-07-07 13:32:04.363371+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["Commerce Department", "Bureau of Economic Analysis", "Census Bureau", "Atlanta Federal Reserve", "Reuters", "Lucia Mutikani", "Andrea Ricci"], "alternates": {"html": "https://wpnews.pro/news/us-trade-deficit-widens-sharply-in-may-as-capital-goods-imports-hit-record-high", "markdown": "https://wpnews.pro/news/us-trade-deficit-widens-sharply-in-may-as-capital-goods-imports-hit-record-high.md", "text": "https://wpnews.pro/news/us-trade-deficit-widens-sharply-in-may-as-capital-goods-imports-hit-record-high.txt", "jsonld": "https://wpnews.pro/news/us-trade-deficit-widens-sharply-in-may-as-capital-goods-imports-hit-record-high.jsonld"}}