Businesses face new trade headwinds as US deficit widens

The U.S. trade deficit in goods and services widened to $77.6 billion in May as imports rose 3.3% and exports fell 3.2%. Increased demand for electronics, medicines, and AI-related technology drove higher imports, while the Trump administration’s tariffs and global supply chain disruptions from the Strait of Hormuz conflict failed to consistently reduce the deficit. New trade actions under Section 301 are being prepared to impose tariffs on countries restricting forced labor imports and those subsidizing domestic manufacturing.