U.S. trade deficit reaches 5-month high in May

/ AP

Trump talks U.S.-China trade war at G20 summit

WASHINGTON — President Trump insists his multi-front trade wars are working, but the U.S. trade deficit rose to a five-month high in May as the politically sensitive imbalances with China and Mexico widened.

The Commerce Department said Wednesday that the gap between the goods and services the U.S. sells and what it buys from foreign countries rose 8.4% to $55.5 billion in May, the highest since December. Exports increased 2% to $210.6 billion on rising shipments of soybeans, aircraft and cars. But imports climbed more — 3.3% to $266.2 billion — on an increase in crude oil and cellphones.

The deficit in the trade of goods with Mexico rose 18.1% to a record $9.6 billion. The goods gap with China widened 12.2% to $30.2 billion.

Trending News

Mr. Trump has sought to reduce America's persistent trade deficit, which he sees as a sign of economic weakness and the result of bad trade agreements crafted by naive U.S. negotiators. He has slapped tariffs on foreign steel, aluminum, dishwashers, solar panels and on thousands of Chinese goods. He also has renegotiated a trade pact with Canada and Mexico that awaits approval by Congress.

And his team has conducted 11 rounds of talks with China aimed at pressuring Beijing to curb its aggressive push to challenge American technological dominance, an effort that allegedly includes cybertheft and forcing foreign firms to hand over trade secrets.

Mainstream economists say the trade gap is the product of economic factors that don't respond much to changes in trade policy: Americans buy more than they produce, and imports fill the gap. And a persistently strong U.S. dollar also puts American exporters at a price disadvantage overseas.

So far this year, the goods-and-services deficit is $261.4 billion, up 6.4% from January-May 2018.

In May, the United States ran a $76.1 billion deficit in the trade of goods such as appliances and cars. That was partially offset by a $20.6 billion surplus in the trade of services such as banking and tourism.

First published on July 3, 2019 / 9:31 AM

© 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

In a first, scientists eliminate HIV from animal's genome

Researchers used gene-editing technique to eliminate HIV from mice, and say it's an advance in efforts to develop a cure in people

8M ago

U.S. trade deficit reaches 5-month high in May

President Trump says his tariffs are working, but the evidence isn't clear

9M ago

Trump farm subsidies: Farmers find ways to boost their payments

The USDA's rules make it easy for big farmers to greatly exceed the limits on how much they can collect

39M ago

USA Women's soccer jersey is Nike's best-selling soccer top

The top is outselling all men's team jerseys, a boost that comes as the women's team is battling for equal pay

48M ago

Thousands of barrels of Jim Beam bourbon burn in warehouse fire

Crews were able to put one warehouse fire out, but the other kept burning for hours

49M ago

U.S. trade deficit reaches 5-month high in May

President Trump says his tariffs are working, but the evidence isn't clear

9M ago

Castro calls July 4th parade a "waste of money" meant to boost Trump's ego

President Trump is holding a speech in front of the Lincoln Memorial on Independence Day

57M ago

Trump to hold campaign rally on day of Mueller's testimony

Mueller is scheduled to publicly testify​ before the House Judiciary and Intelligence committees

2H ago

Transcript: Russ Travers on "Intelligence Matters"

In this episode of "Intelligence Matters," Michael Morell talks with top counterterrorism official Russ Travers, who expressed concern about a "fatigue factor" setting in about terrorism

3H ago

Top U.S. counterterror official warns of "complacency" as ISIS spreads

On "Intelligence Matters" this week, Russ Travers, of the National Counterterrorism Center, said ISIS will continue to be a concern for a long, long time

3H ago

USA Women's soccer jersey is Nike's best-selling soccer top

The top is outselling all men's team jerseys, a boost that comes as the women's team is battling for equal pay

48M ago

Japan tells more than 1 million to flee as downpour brings havoc

Residents in parts of main island of Kyushu directed to evacuate to designated shelters as heavy rains batter region

2H ago

Rapper A$AP Rocky arrested for suspected assault in Sweden

New York hip hop artist detained after concert in Stockholm, along with 3 other people involved in an apparent street fight over the weekend

3H ago

Scores killed as airstrike hits migrant detention center in Libya

Europe has helped stopped thousands of migrants setting off from North African nation, leaving them in squalid detention centers caught in cross-fire of a chaotic fight for power

2H ago

Alex Morgan celebrates game-winning goal by sipping tea

"This team is special. Thanks for the bday love. Thanks for the rocking stadium. Thanks for continuing to believe with us. And that's the tea," Morgan tweeted after the victory went viral

8H ago

Rapper A$AP Rocky arrested for suspected assault in Sweden

New York hip hop artist detained after concert in Stockholm, along with 3 other people involved in an apparent street fight over the weekend

3H ago

Blind Dance Company brings talent into the light

One dancer credits the company with "helping me with evolving my stage swag, presence and confidence"

19H ago

New on Netflix, Hulu and Amazon

Shows and movies you'll want to stream soon

Jun 24 33 photos

Five actors reportedly in the running to play Elvis

Who do you think is best to play the King of Rock and Roll?

20H ago

Critic Emily Nussbaum on "I Like To Watch"

The New Yorker's Pulitzer Prize-winning culture critic Emily Nussbaum joins "CBS This Morning" co-host Tony Dokoupil to discuss her new book "I Like To Watch: Arguing My Way Through the TV Revolution."

21H ago 15:07

Georgia court system struck by ransomware attack

The online extortion follows a similar pattern seen this year in two Florida municipalities

Jul 2

NASA launches capsule to test abort system for moonship

The launch abort system would pull a moon-bound crew to safety in a booster failure

17H ago

Toddler buys $400 couch on Amazon unbeknownst to mom

Amazon "1-click" ordering makes it a little too easy to buy stuff via cellphone, a San Diego mother learns the hard way

Jul 1

Facebook will ban posts that lie about 2020 Census

The social network said it's working to prevent a repeat of the chaos of the 2016 election cycle

Jul 1

Lawsuits liken employer background checks to snooping

Companies from Amazon to Uber are accused in lawsuits of improperly conducting background checks on job applicants

Jun 28

In a first, scientists eliminate HIV from animal's genome

Researchers used gene-editing technique to eliminate HIV from mice, and say it's an advance in efforts to develop a cure in people

8M ago

Is climate change to blame for Europe's heat wave?

Scientific evidence suggests heat waves are becoming more frequent and more extreme

17H ago

Cockroaches are becoming nearly impossible to kill

Three store-bought insecticides were tested – and not even using all three at once could totally kill a cockroach colony

21H ago

Solar eclipse boom-time for small cities in the sweet spot

One Chilean city was flooded with more than 300,000 visitors to see the moon completely hide the sun for just a few fleeting minutes

15H ago

Fox makes 2,176-mile trek from Norway to Canada

"We couldn't believe our eyes at first," researchers said after watching the resilient fox walk more than 2,000 miles

13H ago

In a first, scientists eliminate HIV from animal's genome

Researchers used gene-editing technique to eliminate HIV from mice, and say it's an advance in efforts to develop a cure in people

8M ago

Seattle Children's Hospital surgeries halted after mold-related death

5 other patients were infected by potentially dangerous mold, shutting most operating rooms and prompting major work to fix the problem a hundreds of surgeries put on hold

updated 8M ago

Dairy groups push coffee in schools

As milk consumption declines in the U.S., dairy groups try to get American teens to drink more coffee lattes

15H ago

DOJ pushes to close loophole for knock-off fentanyl

Fentanyl, a synthetic opioid, is about 100 times stronger than morphine, and its analogues can be even more potent

18H ago

What's behind the growing trend of booze-free events?

According to the CDC, alcohol is estimated to be responsible for about 88,000 deaths per year – more than overdoses from all other drugs combined

18H ago

U.S. trade deficit reaches 5-month high in May

President Trump says his tariffs are working, but the evidence isn't clear

9M ago

Trump farm subsidies: Farmers find ways to boost their payments

The USDA's rules make it easy for big farmers to greatly exceed the limits on how much they can collect

39M ago

USA Women's soccer jersey is Nike's best-selling soccer top

The top is outselling all men's team jerseys, a boost that comes as the women's team is battling for equal pay

48M ago

Lee Iacocca, Chrysler savior and Ford Mustang creator, dies at 94

In his 32-year career at Ford and then Chrysler, Iacocca helped launch some of Detroit's best-selling and most significant vehicles

2H ago

$15 minimum wage: Evidence that it won't mean lost jobs

A new study finds that a House bill hiking the federal base pay wouldn't result in significantly less employment

14H ago

Crime

Navy SEAL cleared of murdering ISIS fighter

A decorated Navy SEAL is expected back in court Wednesday after being acquitted of the most serious charged in a war crimes trial. A military jury cleared special operations chief Edward Gallagher of premeditated murder. He still faces sentencing on a charge of posing with a militant’s body. Jonathan Vigliotti reports

1H ago 02:12

Navy SEAL found not guilty in murder case

Gallagher was found not guilty all other counts except for posing with a dead war prisoner in Iraq

14H ago

Navy SEAL acquitted of murder

A decorated Navy SEAL was found not guilty of committing murder in Iraq. But the jury did convict Edward Gallagher of another charge. Jonathan Vigliotti reports.

11H ago 02:19

Navy SEAL found not guilty in murder case

Edward Gallagher, a decorated U.S. Navy SEAL, was found not guilty of murder in the death of an ISIS prisoner. Gallagher was found not guilty all other counts except for posing with a dead war prisoner in Iraq. CBS News national security correspondent David Martin joins CBSN's "Red & Blue" with the latest.

14H ago 02:13

Relative of Ortiz suspect speaks out

A relative of the alleged mastermind in the shooting of former Boston Red Sox star David Ortiz is speaking out about the investigation in the Dominican Republic. The relative of Víctor Hugo Gómez Vasquez spoke to CBS Boston station WBZ-TV on the condition of anonymity. WBZ's Anaridis Rodriguez reports from Boston.

19H ago 01:44

Space

NASA successfully tests abort system

NASA completed a successful test of its launch abort system Tuesday morning from Cape Canaveral, Florida. That puts the U.S. space program one step closer to sending astronauts back to the moon, and eventually to Mars. CBS News space consultant Bill Harwood joined CBSN with details.

16H ago 04:49

Solar eclipse boom-time for small cities in the sweet spot

One Chilean city was flooded with more than 300,000 visitors to see the moon completely hide the sun for just a few fleeting minutes

15H ago

NASA launches capsule to test abort system for moonship

The launch abort system would pull a moon-bound crew to safety in a booster failure

17H ago

Welcome to July 1969: Inside NASA's restored Mission Control

"CBS This Morning" got an exclusive look inside the three-year, multimillion-dollar renovation

Jun 28

SpaceX launches Falcon Heavy rocket

SpaceX launched a Falcon Heavy rocket for its third flight, carrying 24 small science and technology satellites into multiple orbits for the Pentagon, NASA and a variety of other agencies. CBS News space consultant Bill Harwood joins "CBSN AM" to explain the goals of the complex mission and what happened.

Jun 25 08:08

New on Netflix, Hulu and Amazon

Shows and movies you'll want to stream soon

Jun 24 33 photos

Evidence photos from the police shooting of Danroy "DJ" Henry Jr.

Evidence from the scene of Pace University student DJ Henry’s fatal encounter with Officer Aaron Hess in Mount Pleasant, N.Y.

Jun 22 19 photos

Apollo 11 50th anniversary: 50 photos from the moon

50 photos to celebrate the 50th anniversary of the moon landing

Jun 21 50 photos

Deadliest highway in every state

These are the highways with the highest rate of fatal crashes

Jun 20 50 photos

Mount Everest deaths: Inside a deadly climbing season

A look at a treacherous 2019 climbing season on the world's highest peak

Jun 20 39 photos

Popular

Amanda Gorman performs Independence Day poem

In honor of Independence Day, we asked 21-year-old Amanda Gorman the inaugural youth poet laureate of the United States, to write a poem. The Boston Pops Orchestra, conducted by Keith Lockhart, performs one of the most famous July Fourth concerts each year. We asked them to bring music to her composition, "Believer's Hymn for the Republic."

updated 2M ago 04:40

How to fight China's growing global influence

China, considered by many to be the United States' top national security threat, poses a number of threats. The country's expanding global influence directly competes with America’s military, economic, and technological might, and the U.S. has lost billions in stolen intellectual property. Former acting CIA director Mike Morell joins "CBS This Morning" to discuss how to fight China's growing global influence.

updated 2M ago 05:32

Pharrell gives internships to 100+students

Pharrell Williams had a surprise announcement during his commencement speech to graduating charter school students in Harlem. Williams guaranteed internships to the entire graduating class of Harlem Children’s Zone Promise Academy after their first year of college.

updated 20M ago 01:04

Nike defends pulling Betsy Ross flag shoes

Nike is defending its controversial decision to pull a special edition of Fourth of July sneaker featuring the first American flag. The Air Max 1 sneaker depicted a Revolutionary-era flag on the sneaker’s heel. Nike endorser, former NFL quarterback Colin Kaepernick, reportedly objected to it, partly because of its association with slavery. Jericka Duncan reports.

updated 19M ago 02:05

Is alternative meat healthier than real?

Many Americans will spend the Fourth of July barbecuing — but for a growing number, traditional meat will not be on the menu. “Beyond Burger” and “Impossible Burger” have exploded in popularity; the two alternative meat brands are available in more than 40,000 restaurants and grocery stores combined. Dr. Tara Narula joins "CBS This Morning" for "Morning Rounds," to discuss if alternative meat is healthier than the real deal.

updated 35M ago 02:58