U.S. goods trade deficit widened to $105.8 billion in May, exports fell 5.4%

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The U.S. Department of Commerce announced that the goods trade deficit widened by 27.4% in May to $105.8 billion, exceeding the market expectation of $85.0 billion.

The goods trade deficit rose to a 14-month high, mainly due to companies increasing imports to avoid the impact of material shortages and price increases caused by the war in the Middle East.

During the period, goods imports increased by $10.9 billion or 3.6% to $313.4 billion, while exports decreased by $11.8 billion or 5.4% to $207.7 billion.

After the U.S. and Iran signed a preliminary peace agreement last week, shipping traffic through the Strait of Hormuz recovered, and oil prices fell sharply as a result. However, even as supply chains return to normal, economists warn that the trade deficit may remain high due to heavy reliance on imports for artificial intelligence investments.

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