US trade deficit
Coverage of US trade deficit in the Nexus archive.
- Trump's trade rep defends new tariffs on Canada
U.S. President Donald Trump's trade representative is defending new 50% tariffs on Canadian products as a strategy to reduce the U.S. trade deficit.
- The U.S. trade deficit surged to a 14-month high as AI spending drove record imports
The U.S. trade deficit reached a 14-month high driven by increased imports linked to AI data center construction. Components required for AI infrastructure expansion are primarily sourced from abroad, contributing to the surge in import demand.
- 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.
- US vows to keep some Canada, Mexico tariffs as trade pact deadline looms
The US plans to maintain tariffs on some Canadian and Mexican imports, complicating efforts to extend the US-Mexico-Canada Agreement (USMCA) past its July 1 deadline. The Trump administration cited unresolved trade disputes with Canada and a large trade deficit, while Mexico reported a record monthly trade surplus. Mexico has surpassed China as the US's largest trading partner.