Washington (Reuters) – The United States’s trade deficit has widened to reach a record level in March, companies that have increased their imports of goods in anticipation of customs duties, which caused a contraction of gross domestic product (GDP) in the first quarter.
The trade deficit increased by 14% to a record level of 140.5 billion dollars (92.21 billion euros), against 123.2 billion dollars (revised) in February, according to the Economic Analysis (BEA) of the American Department of Commerce.
Economists interviewed by Reuters had planned that the trade deficit would increase to $ 137 billion.
The massive customs duties of the American president Donald Trump, who notably focused customs duties on Chinese imports at a level of 145%, prompted companies to quickly import goods in order to avoid higher costs.
Although so-called reciprocal customs duties against most trade partners in the United States have been suspended for 90 days, from Chinese products that came into force in early April, triggering a major trade war with Beijing.
In March, imports jumped 4.4% to a record level of $ 419 billion, while exports increased by 0.2% to 278.5 billion dollars.
The government said last week that the trade deficit had amputated the GDP of 4.83 percentage points in the last quarter, causing a 0.3% contraction of the US economy during the period from January to the end of March.
Economists expect the influx of imports to decrease by May, which could help GDP rebound in the second quarter.
(Written by Lucia Mutikani; Diana Mandia; edited by Augustin Turpin)
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