English
US Trade Deficit Rises to Record High
US data released on Tuesday, May 6, revealed that the US trade deficit surged to a record high in March, as businesses increased their imports in anticipation of the implementation of tariffs. This primarily contributed to the US economy contracting during the first quarter of this year for the first time in three years.
Data from the Bureau of Economic Analysis of the US Department of Commerce on Tuesday showed that the US trade deficit rose 14% in March to a record high of $140.5 billion, compared to a revised reading of $123.2 billion in February.
The March figures for the US trade deficit were higher than economists' estimates in a Reuters poll, which had indicated a trade deficit of $137 billion.
This comes after the large tariffs announced by US President Donald Trump, which included a significant increase in tariffs on goods imported from China to 145%, led businesses to intensify import operations to avoid increased costs.
While the US President announced a 90-day suspension of tariffs on most US trading partners, tariffs on Chinese goods took effect in early April, sparking a trade war with Beijing.
US imports increased by 4.4% in March, reaching an all-time high of $419 billion. Imports of goods increased by 5.4% in the previous month, reaching a record high of $346.8 billion, according to Reuters.
