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US: International Trade in Goods (Advance)
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Balance | $-85.2B | $-87.5B to $-81.0B | $-105.8B | $-82.4B | $-83.0B |
| Imports - M/M | 3.6% | 1.9% | 2.0% | ||
| Exports - M/M | -5.4% | 4.0% | 3.8% |
Highlights
A drop in exports combined with higher imports widened the international trade deficit in goods to $105.8 billion in May from $83.0 billion in April, a larger gap than the $85.2 billion expected by forecasters in an Econoday survey. This was the largest deficit since March 2025.
Exports of goods were down 5.4 percent to $207.7 billion after rising 3.8 percent in April, with declines across most major categories: consumer goods fell 9.2 percent, industrial supplies were down 7.0 percent, capital goods down 5.0 percent, and"other" goods down 6.8 percent. By contrast, exports of foods, feeds, and beverages increased 3.9 percent and autos were up 0.5 percent.
Imports of goods were up a further 3.6 percent in May after rising 2.0 percent in April with gains across the board, ranging from 0.4 percent for capital goods to 11.5 percent for"other" goods. Consumer goods imports increased 5.7 percent, autos were up 6.3 percent, and foods, feeds, and beverages up 4.3 percent.
Market Consensus Before Announcement
The goods trade gap is seen at $85.2 billion in May versus $82.4 billion in April.
Definition
This monthly report offers advance import and export data on the goods components of the monthly trade report. Goods make up roughly two-thirds of the nation's exports and roughly three-quarters of imports.
Note that data in the advance goods report are accounted for on a census basis and can differ slightly from subsequent data in the international trade report where goods data are accounted for on a balance of payment basis to adjust for changes in cross-border ownership.
Description
Changes in the levels of imports and exports, along with the difference between the two (the trade balance), are valuable gauges of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the dollar in the foreign exchange market.
Imports indicate demand for foreign goods here in the United States. Exports show foreign demand for U.S. goods. The dollar can be particularly sensitive to changes in the chronic trade deficit run by the United States, since this trade imbalance creates greater demand for foreign currencies.
Market reaction to this report is complex. Typically, the smaller the trade deficit, the more bullish it is for the dollar. Also, stronger exports are bullish for corporate earnings and the stock market. Like most economic indicators, the trade balance is subject to substantial monthly variability, especially when oil prices change.
It is also useful to examine the trend growth rates for exports and imports separately because they can deviate significantly. Trends in export activity reflect both the competitive position of American industry and the strength of domestic and foreign economic activity. U.S. exports will grow when: 1) U.S. product prices are lower than foreign product prices; 2) the value of the dollar is relatively weaker than that of foreign currencies; 3) foreign economies are growing rapidly.
Imports will increase when: 1) foreign product prices are lower than prices of domestically-produced goods; 2) the value of the dollar is stronger than that of other currencies; 3) domestic demand for goods and services is robust.