The United States trade deficit widened by 18.7% in May 2025, reaching $71.5 billion, according to data from the Bureau of Economic Analysis. The increase marks the first expansion in two months and is attributed primarily to a decline in exports, which fell to their lowest level since the pandemic. Both imports and exports decreased amid disruptions caused by tariffs imposed during the Trump administration, which have affected supply chains and economic activity. Meanwhile, Canada’s merchandise trade deficit narrowed to $5.9 billion in May, down from a record high of $7.6 billion in April, as exports to the U.S. declined for the fourth consecutive month. The narrowing of Canada’s trade deficit was partly supported by higher gold exports, despite the continued drop in shipments to the United States.