In March, the U.S. trade deficit reached a record due to companies rushing to import products before Donald Trump's tariffs went into effect. According to data from the Department of Commerce, the trade deficit in goods and services increased by 14 percent compared to the previous month, totaling $140.5 billion.
The report revealed that the trade deficit with Ireland rose to $29.3 billion in seasonally adjusted terms and that despite this increase, it is expected that as the trade deficit decreases, a rebound in short-term economic growth will occur.
The strategy of accelerating imports before tariffs are imposed seems to be coming to an end, as data from a survey by the Institute for Supply Management shows a decrease in imports by manufacturers and service providers.
Donald Trump seeks to balance bilateral trade with the aim of promoting foreign investment in the U.S., boosting domestic production, and strengthening national industrial security. The drastic increase in the trade deficit in the first quarter was one of the factors contributing to the contraction of the U.S. economy for the first time since 2022.
The total U.S. merchandise trade deficit expanded to a record $150.9 billion in March. While the deficit with Canada decreased, the deficit with Mexico remained close to the record set in February. Economists' estimates pointed to a deficit of $137.2 billion; however, the value of imports increased by 4.4 percent, reaching a historic high of $419 billion.
U.S. exports barely increased by 0.2 percent, while imports of consumer goods recorded a significant increase, largely due to the rise in shipments of pharmaceutical products.
