U.S. trade deficit jumps to record high on pre-tariff import rush

The U.S. trade deficit in goods and services soared to a record $140.5 billion in March.

The U.S. trade deficit in goods and services soared to a record $140.5 billion in March. Year-to-date, the deficit has increased 92.6%, as companies and consumers rush to import goods before President Donald Trump's sweeping global tariffs increase on July 6.

Imports alone have risen 23.3% so far this year and were $17.8 billion higher just last month, the Bureau of Economic Analysis said Tuesday. Exports from the U.S. to other countries increased by just $500 million.

Trump's tariffs, which already amount to more 145% on China, are set to increase in just under 65 days after they were initially paused.

Imports of consumer goods in March rose to an all-time high, led primarily by a massive increase of pharmaceutical imports. The apparel, furniture, jewlery, household appliance and textile categories also saw increases from February.

For the first quarter, U.S. gross domestic product shrank 0.3% because of the biggest drag from net exports (the difference between total exports and total imports) in more than a half-century, according to Wells Fargo economists. Other parts of the U.S. economy also showed signs of slowing. Consumer spending rose 1.8% in the first quarter, the weakest pace since mid-2023.