The U.S. trade deficit surged to a record high in March, driven by businesses scrambling to stockpile goods ahead of new tariffs announced by the Trump administration in April.
- The trade gap exploded beyond expectations, surpassing $140 billion for the first time, significantly above February’s $123 billion deficit and topping economists’ forecasts of $137 billion.
- Companies rushed to bolster their inventories ahead of anticipated tariffs, which the administration announced on April 2nd. The possibility of the tariffs prompted firms to front-load purchases, pushing March imports sharply upward.
More Imports: The historic increase was fueled primarily by a dramatic rise in imports, which soared by $17.8 billion, compared to a modest $500 million uptick in exports.
Bottom Line: April, the first month after the tariff announcement, will give a much better view of the current global trade environment.
