Supply Chain Research

U.S. international trade activity increased by just 1.2% year over year in May, including a 1.3% drop in goods exports. Imports continued to expand with the result that the trade deficit – the Trump administration’s main measure of whether trade is “fair” or not – rose 25.2% to reach $55.5 billion. The increase in the deficit was largely down to trade with Mexico and the EU. Mexican exports to the U.S. surged 9.0% higher, likely due to the temporary concerns about migration-related tariffs. The resulting deficit versus Mexico was the largest since at least 2017. Trade with China by contr...