The U.S. Trade Deficit Surged to a Record High in March

BlockBeats News, May 6: The U.S. trade deficit in March widened to a record high as businesses increased imports ahead of tariff hikes, dragging down the U.S. first-quarter GDP and causing the first contraction in three years.

The U.S. Bureau of Economic Analysis (BEA) said on Tuesday that the March trade deficit jumped 14.0% from a revised $123.2 billion in February to a record $140.5 billion. Economists surveyed by Reuters had previously expected the February trade deficit to rise from the previously reported $127 billion to $137 billion. Trump's comprehensive tariffs prompted businesses to import goods to avoid higher costs.

Data showed that U.S. imports in March rose by 4.4% to a historic high of $419 billion. Goods imports surged by 5.4% to a record $346.8 billion. Exports grew by 0.2% to $278.5 billion, also reaching a historical high. Goods exports increased by 0.7% to $183.2 billion. Economists expect the import surge to fade by May, which may help the GDP rebound in the second quarter. (FX678)