What countries is the US in surplus and what countries are in deficit.

The May figures show surpluses, in billions of dollars, with

• Netherlands ($9.1),
• Hong Kong ($5.6),
• South and Central America ($4.8),
• Australia ($1.9),
• United Kingdom ($1.4),
• Brazil ($1.1),
• Singapore ($0.9),
• Belgium ($0.7), and
• Saudi Arabia ($0.3).

Deficits were recorded, in billions of dollars, with

• Vietnam ($20.6),
• Mexico ($20.1),
• Taiwan ($19.4),
• China ($14.5),
• European Union ($9.3),
• Canada ($7.0),
• Germany ($5.7),
• Malaysia ($4.7),
• South Korea ($4.4),
• India ($4.1),
• Ireland ($4.0),
• Italy ($2.9),
• Switzerland ($2.3),
• Japan ($2.0),
• France ($1.5), and
• Israel ($0.4).

The balance with Switzerland shifted from a surplus of $4.4 billion in April to a deficit of $2.3 billion in May. Exports decreased $6.9 billion to $2.0 billion and imports decreased $0.1 billion to $4.3 billion.

The deficit with Mexico increased $5.3 billion to $20.1 billion in May. Exports decreased $1.5 billion to $33.4 billion and imports increased $3.9 billion to $53.5 billion. Trump announced he will be renegotiating with both Mexico and Canada individually and scrap the USMCA. Having a deficit growing with the US is not going the right way.

The deficit with France decreased $0.9 billion to $1.5 billion in May. Exports decreased less than $0.1 billion to $3.9 billion and imports decreased $0.9 billion to $5.4 billion.

What is the US international trade balance and why is it important

The U.S. international trade balance measures the difference between what the United States exports and what it imports in goods and services. When imports exceed exports, the U.S. runs a trade deficit, which has been the normal condition for decades. The data matter because trade flows feed directly into GDP. Exports add to GDP because they represent goods and services produced domestically and sold abroad. Imports subtract from GDP because they represent spending on goods and services produced outside the U.S.

A wider trade deficit (like this month) can be a drag on GDP growth, especially if imports rise faster than exports. That often means more domestic demand is being satisfied by foreign production. Conversely, a narrower deficit can add to GDP if exports improve or imports weaken. However, the interpretation is not always straightforward. Strong imports can also signal healthy consumer and business demand, while falling imports may point to softer domestic activity. Exports, meanwhile, can be influenced by global demand, currency moves, commodity prices, and trade policy.

For markets, the trade balance is watched less for immediate Fed policy implications and more for what it says about growth momentum, demand, supply chains, and the contribution of net exports to GDP. A larger-than-expected deficit may weigh on GDP tracking estimates, while a smaller deficit can provide a modest boost. With the economy already being judged through the lens of inflation, interest rates, and labor market strength, the trade data offer another look at whether growth is being supported by domestic demand, foreign demand, or a mix of both.