PNN – The US trade deficit widened more than expected in March, hitting a record $140.5 billion, as businesses stockpiled raw materials and consumer goods ahead of the implementation of the bulk of the Trump administration’s tariffs.
According to the report of Pakistan News Network, the deficit in goods and services widened by $17.3 billion from February, according to new data released by the U.S. Census Bureau on Tuesday. The monthly increase was nearly double what economists had forecast, according to FactSet estimates.
CNN America says in this regard: The increase in imports this month was mainly due to the growth in imports of consumer goods, especially medicines and pharmaceutical products. Overall, imports increased 4.4% in March to $419 billion, while exports decreased 0.2% to $278.5 billion.
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Christopher Rupke, chief economist at FwdBonds, wrote in a note: Businesses are clearly struggling to find a way through this unprecedented time of change. But the worst is undoubtedly yet to come, as import duty collection did not begin in earnest until after the White House declared Emancipation Day on April 2.
Trump’s trade policy has raised US tariff rates to their highest levels in decades by imposing a 10% tariff on all imported goods, sharply increasing tariffs on Chinese products, and imposing a range of different tariffs on dozens of trading partners.
Some of these “reciprocal” tariffs, which were set based on a simple calculation of the bilateral trade deficit, were suspended for 90 days.
Despite the start of a new wave of tariffs in April, economists expect the trend of rising imports to continue for the next few weeks.
Economists at Wells Fargo Bank wrote in a note to investors: Goods that were loaded from the origin or are en route to the United States before the date the tariffs were implemented can enter the country without paying tariffs until May 27.