The US trade deficit reached a record $140.5 billion amid Trump tariffs.

Unprecedented growth of the trade deficit in the US

The US Bureau of Economic Analysis recorded an unprecedented increase in the trade deficit to $140.5 billion in March, which exceeds the figures at the beginning of the year by 92.6%.

According to NBC, this trend is related to massive imports of goods ahead of the planned increase in global tariffs by President Donald Trump, which are already over 145% on Chinese goods.

Imports to the US increased by 23.3%, with last month's increase amounting to $17.8 billion. Notably, the growth of imports of consumer goods, including pharmaceuticals, machinery, furniture, jewelry, and textiles, was particularly pronounced. At the same Time, exports from the US increased by only $500 million.

Wells Fargo economists report that the US gross domestic product shrank by 0.3% in the first quarter, the largest decline due to external trade in the past fifty years. Consumer spending also slowed down, showing the lowest growth since mid-2023 at 1.8%.

Goldman Sachs specialists consider the probability of a recession occurring within the next 12 months to be quite high - about 45%. The company's chief economist, Jan Hatzius, predicts further increases in tariffs on pharmaceuticals, semiconductors, and possibly other industries.

Meanwhile, Statistics Canada reported a 6.6% decline in Canadian exports to the US for the second consecutive month, while exports to other countries, including the UK, Germany, the Netherlands, and Hong Kong, have conversely increased.

News Analysis

The unprecedented growth of the trade deficit in the US and the deepening crisis in the country's economy indicate serious problems caused by the impact of massive imports and the increase in global tariffs. The projected probability of a recession adds certain concerns for economists and investors in the future.