US trade deficit surges amid artificial intelligence spending boom

The United States trade deficit has jumped to $77.6bn in May on rising imports, driven by goods that include pharmaceuticals, mobile phones and semiconductors. Imports ticked up 3.3 percent from April to $395.3bn while exports fell 3.2 percent to $317.7bn, according to a report released on Tuesday by the US Department of Commerce's Bureau of Economic Analysis and the Census Bureau. The surge came amid a boom in artificial intelligence spending across the economy. Notably, semiconductor imports jumped by $1.2bn. In the oil and gas sector, petroleum imports jumped to their highest level on record despite the US-Israel war on Iran.