US trade deficit surges amid artificial intelligence spending boom | Business and Economy News
US trade deficit surges amid artificial intelligence spending boom | Business and Economy News
Publish Date: 2026-07-07 12:40:00
Source Domain: www.aljazeera.com
- The U.S. trade deficit rose to $77.6 billion in May, driven by higher imports of pharmaceuticals, mobile phones, and semiconductors.
- Imports increased by 3.3 percent from April to $395.3 billion while exports fell by 3.2 percent to $317.7 billion.
- The largest contributors to the increased deficit included a surge in semiconductor imports, petroleum imports reaching a record high, and automotive parts and engines.
- Toyota announced plans to invest $3.6 billion in expanding its U.S. auto production, shifting some production to Texas.
- The U.S. saw its largest deficits with Vietnam, Mexico, Taiwan, China, and the European Union, while maintaining surpluses with the Netherlands, Hong Kong, Australia, and the United Kingdom.
- Canada’s trade surplus widened, reaching a four-year high, as exports to the U.S. climbed to their highest level since February 2025.
