Even with tariffs, US trade deficit soars 42% in May as imports rise

Brazil disputes the 12.5% tariff and calls the US investigation 'arbitrary'
The United States' trade deficit increased significantly in May, driven by the increase in imports and the fall in exports, according to data released by the government this Tuesday (7).
The trade deficit occurs when a country buys more products and services from abroad than it sells to other countries. In May, the United States imported more goods and exported less, widening the difference between foreign purchases and sales.
The result was recorded in a period marked by the impacts of the war in the Middle East, which altered international trade flows and increased demand for some products.
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In addition, the advance of investments in artificial intelligence boosted external purchases of equipment and inputs used in the construction of data centers in the country.
Imports rise and exports fall
The US trade deficit jumped 42.2% in relation to April, reaching US$ 77.6 billion (around R$ 400 billion).
Imports grew 3.3%, to US$ 395.3 billion (R$ 2.04 trillion), while exports fell 3.2%, to US$ 317.7 billion (R$ 1.64 trillion).
Among the products that contributed most to the increase in imports are consumer goods, crude oil, industrial inputs, automobiles, parts and computer equipment, according to the Department of Commerce.
On the export side, foreign sales of crude oil and derivatives increased after the joint attacks by the US and Israel against Iran at the end of February. On the other hand, products such as medicines registered a drop in exports.
Deficit increases amid Trump's tariffs
The increase in the trade deficit also occurs amid the tariff policy adopted by Donald Trump's government.
The measures aim to make imported products more expensive, encourage domestic production and reduce the United States' dependence on foreign suppliers.
However, data from May shows that this effect has not yet appeared. Even with rising import costs, American companies continued to buy products from abroad, especially items considered essential, such as technology equipment, oil and industrial components.
The minimum global tariff in force is 10% on most imported products, although some sectors are subject to additional taxes, such as steel, aluminum, automobiles and auto parts.
In addition, the American government foresees new tariffs for several countries, including Brazil, amid trade investigations conducted by the United States.
Experts point out that companies can also anticipate purchases from abroad to avoid possible tariff increases in the future. At the same time, retaliatory measures adopted by other countries could affect American exports.
*With information from France Presse

Source: G1