The US trade deficit widened 42% to $77.6 billion in May, the largest monthly gap since March 2025, as imports climbed 3.3% to $395.3 billion and exports fell 3.2%. The increase was driven by a wider goods trade deficit, which expanded to $106.5 billion, with imports of consumer goods and capital goods, including electronics and semiconductors, rising. Capital goods imports reached a record high, supported by continued business spending on artificial intelligence infrastructure.

Economist Peter Schiff criticized President Donald Trump’s trade policies, stating that despite tariffs aimed at narrowing the trade gap, the US remains heavily dependent on imports. Schiff noted that the country is "more reliant than ever on the rest of the world to produce what we consume and lend us the money to buy it." This aligns with his long-standing warning that the US consumes more than it produces and depends on foreign creditors to finance the imbalance.

The broader market reaction saw US stocks trade mixed, with the Dow Jones Industrial Average gaining 0.39% to 53,261.78. The NASDAQ fell 0.52% to 25,985.50, and the S&P 500 dropped 0.09% to 7,530.71. Sector performance varied, with health care shares jumping 1.8% and information technology stocks falling 1.7%. Crinetics Pharmaceuticals Inc shares surged 99% to $83.52 after announcing it will be acquired by Vertex Pharmaceuticals.

Commodities showed mixed movement, with oil trading up 0.7% to $69.01 and gold down 0.3% to $4,156.60. Silver fell 1.4% to $61.440, and copper dropped 0.1% to $6.2290. European shares were mixed, with the STOXX 600 falling 0.2% and Germany’s DAX declining 0.7%. Asian markets closed lower, with Japan’s Nikkei 225 falling 2.12% and India’s BSE Sensex declining 0.13%.

Chief economic advisor at Brean Capital John Ryding indicated that the wider trade gap is likely to subtract about 1.7 percentage points from second-quarter real GDP growth. The Logistics Manager’s Index rose to 71.1 in June from 69.5 in the previous month, recording the strongest growth since March 2022.

Consumers are increasingly weighing the cost of convenience against savings, according to a new survey by ICSC. The research indicates that while shoppers still value fast delivery and easy returns, rising fees are influencing purchase decisions and retailer loyalty. The findings highlight a shift in behavior where consumers are willing to make tradeoffs, such as accepting slower shipping, provided the value exchange is clear.

ICSC's "Cost of Convenience" survey was conducted online from May 13, 2026 to May 15, 2026, with a demographically representative U.S. sample of 1,000 respondents. The data explores consumer behaviors and preferences related to shipping, returns, and fulfillment strategies. Tom McGee, President & CEO of ICSC, noted that the cost of convenience has become a key part of the shopping decision, with consumers evaluating delivery fees and return policies alongside price.

Key Survey Findings

The study identified several critical trends regarding how consumers approach online shopping costs and physical retail experiences.

Cost vs. Convenience

A significant majority of shoppers are prioritizing savings over speed. The survey found that 90% of respondents would accept slower shipping in exchange for savings. Additionally, 61% stated that lower cost matters more than convenience when shopping online. Despite this preference for savings, 70% of respondents agree that retailers should offer shipping that is both free and fast, indicating an expectation for high standards even when they choose slower options.

Impact on Loyalty and Conversion

Shipping and return policies are major drivers of cart abandonment and retailer churn. The data shows that 70% of online shoppers have abandoned their cart because of shipping costs. Furthermore, 67% said return fees make them less likely to purchase online. A total of 65% have stopped, or would consider stopping, shopping with a retailer because of delivery fees, slow shipping, or inconvenient returns.

Generational and Income Divides

Age and income levels significantly shape how consumers value convenience. Millennials (78%) and Gen Z (74%) are the generations most willing to pay extra for faster shipping, compared to just 32% of Baby Boomers. Half of Gen Z consumers have already stopped shopping with a retailer due to slow delivery or inconvenient returns, compared with 25% of Baby Boomers. Higher-income consumers also show less tolerance for poor service; 76% of consumers with household incomes of $125,000-$249,999 are likely to stop shopping with a retailer due to delivery or return issues, compared to 65% overall.

The Role of Transparency and Physical Stores

Transparency regarding fees remains a critical factor for consumer trust. The survey revealed that 56% of consumers believe retailers are not upfront about return fees before purchase. However, 71% would be more accepting of return fees if they were disclosed upfront. Physical stores continue to provide value by mitigating online shopping friction, with 57% of respondents valuing stores for avoiding shipping fees and 63% valuing immediate access to products.