The U.S. trade deficit surged 42% in May, reaching $77.6 billion, marking the largest gap in over a year. This increase is significantly driven by a rise in imports of capital goods and artificial intelligence components, despite a 3.2% drop in exports. The widening trade deficit reflects ongoing pressures in the economy, with businesses facing new trade headwinds and concerns about second-quarter growth. In response to these challenges, the USDA noted that new trade agreements are fostering agricultural export growth, yet the persistent trade gap continues to overshadow positive developments in other sectors.