U.S. goods exports fell to $179.2 billion in May, a month-on-month drop of $9.7 billion, or 5.2%, according to Commerce Department data. It was the steepest fall since the early stages of the pandemic in 2020, reversing April’s 3.5% rise and leaving the international goods deficit at $96.6 billion. Economists traced the slump to the broad tariffs President Donald Trump introduced in early April, including a still-effective universal 10% levy and a series of sector-specific duties. The measures prompted foreign buyers to scale back purchases of U.S. products after an earlier rush to secure supplies ahead of the import penalties. Industrial supplies led the decline with a 13.6% slide, while vehicle shipments recovered 3.5% after a sharp April drop. The trade setback adds to signs of tariff-related economic strain. First-quarter gross domestic product contracted at a 0.5% annualised pace, the first decline since 2022, as companies front-loaded imports before the levies took effect. Analysts expect trade flows to remain volatile until there is greater clarity on the scope and duration of the administration’s tariff regime.