The U.S. trade deficit rose 11.1% to $96.6 billion (£70.4 billion) according to official data out this week.
The goods trade gap widened 11.1% to $96.6 billion in May (Image: Getty)
A drop in exports pushed the U.S. trade gap as appetite for US goods slowed amid US President Donald Trump's 'Freedom Day' tariff increases.
In May the US goods trade gap widened 11.1% to $96.6 billion according to the nations Commerce Department's Census Bureau; exports of goods dropped $9.7 billion to $179.2 billion while imports were little changed at $275.8 billion. The official announcement came as sportswear giant Nike warned that tariffs will cost it around an extra one billion US dollars (£727 million).
The sportswear giant said it was taking action to offset the hit, having recently warned it would raise prices on some trainers and clothing in the US to counter rising tariffs.
Nike also said it would reduce supply from China to the US market to bring down costs.
PA reported that Nike currently makes around 16% of its footwear in China, which is then imported into the US, but is looking to reduce this to a “high single-digit range” by the end of the current financial year.
Trending
Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
Matt Friend, Nike’s chief financial officer, said: “These tariffs represent a new and meaningful cost headwind.”
“We will optimise our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States, despite the current elevated tariffs for Chinese products imported into the United States.
“Manufacturing capacity and capability in China remains important to our global source base.”