The U.S. trade deficit widened sharply to an all-time high in March as American companies rushed to import foreign goods ahead of President Donald Trump‘s sweeping new trade tariffs. This move triggered a rush of orders and skewed international trade flows.
According to data released Monday by the U.S. Bureau of Economic Analysis and the Census Bureau, the trade deficit surged 14% from a revised $123.2 billion in February to $140.5 billion in March, the most significant monthly gap ever recorded.
The spike was driven by a 4.4% jump in imports to $419 billion, while exports rose just 0.2% to $278.5 billion.
March Trade Data Shows Imports Far Outpacing Exports
| U.S. Trade Deficit (March): | $140.5 Billion | +14.0% |
| U.S. Exports (March): | $278.5 Billion | +0.2% |
| U.S. Imports (March): | $419.0 Billion | +4.4% |
Import Surge Fueled By Tariff Fears
The March data likely reflect a wave of frontrunning, a strategy in which businesses accelerate shipments to anticipate policy changes.
On April 2, the Trump administration announced a sweeping tariff package targeting all trading partners, which sent ripples through global supply chains and financial markets. Just one week later, the White House introduced a 90-day pause to allow time for trade negotiations.
Consumer goods imports jumped $22.5 billion in March, driven by a staggering $20.9 billion surge in pharmaceutical preparations, as well as gains in automotive parts, computer accessories, and capital goods. Meanwhile, imports of industrial supplies and materials fell $10.7 billion.
Record Goods Deficit, Weak Services Surplus
The goods deficit alone ballooned by $16.5 billion to $163.5 billion, while the services surplus shrank $800 million to $23.0 billion.
Year-to-date, the total trade deficit has soared 92.6% from the same period in 2024, totaling an additional $189.6 billion as import growth of 23.3% continues to far outpace exports, which rose by 5.2%.
The trade gap expanded to $131.4 billion on a three-month moving average basis, up $14.1 billion from February. Imports averaged $407.1 billion, while exports averaged $275.7 billion.
European Union, China, Mexico Lead Deficit Expansion
Country-level data revealed deficits with the European Union at $48.3 billion, Ireland at $29.3 billion, and China at $24.8 billion.
The deficit with Ireland surged by $15.3 billion, primarily due to a sharp increase in pharmaceutical imports — a potential reflection of rushed purchases by U.S. health companies ahead of expected cost increases under the tariffs.
Deficits with France rose by $2.4 billion and with Mexico by $1.5 billion. The deficit with Switzerland, by contrast, narrowed by $4.1 billion due to a notable drop in imports.
Export Trends Remain Soft
Goods exports rose modestly by $1.3 billion to $183.2 billion in March, with notable gains in natural gas, nonmonetary gold, and automotive vehicles. Yet, capital goods exports declined $1.5 billion, weighed down by a $1.8 billion drop in civilian aircraft.
Services exports dipped $900 million to $95.2 billion, largely driven by a $1.3 billion decline in travel services. This decline is possibly tied to weaker demand in tourism-related sectors amid higher international costs and lingering economic uncertainty.
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