The U.S. trade deficit soared to a record $140.5 billion in March as consumers and businesses alike tried to get ahead of President Donald Trump’s latest and most sweeping tariffs, according to the Associated Press.
The deficit — which measures the gap between the value of goods and services the U.S. sells abroad against what it buys — has roughly doubled over the last year. In March 2024, Commerce Department records show, that gap was just under $68.6 billion.
According to federal data released on Tuesday, U.S. exports for goods and services totaled about $278.5 billion in March, while imports climbed to nearly $419 billion. That’s up $500 million and $17.8 billion, respectively, from February trade.
Consumer goods led the imports surge — increasing by $22.5 billion in March — and pharma products in particular climbed $20.9 billion, the U.S. Census Bureau and Bureau of Economic Analysis noted.
Imports of “capital goods,” like computers, automotive parts and cars, also increased in March, but industrial supplies and materials, such as metal and crude oil coming into the U.S., fell — notably as steel and aluminum tariffs and other levies impacting energy took effect. Service-based imports like travel also decreased.
March’s trade deficit surpasses the last monthly record of $130.7 billion reported in January — also amid tariff uncertainty after Trump took office, marking a more than $32 billion jump from December.
Imports grew at a total 41% pace for that period, its fastest rate since 2020, shaving 5 percentage points off first-quarter growth, but that surge is likely to reverse in the second quarter, removing some weight on GDP.
