The United States’s trade deficit swelled in the first quarter as the onset of President Trump’s tariffs rattle the nation’s economy and global relations.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis said Tuesday the goods and services deficit was $140.5 billion in March, an 8 percent increase from the month prior.
The adjustment comes as the year-to-date goods and services deficit increased $189.6 billion, or 92.6 percent, from the same period in 2024, according to the Census Bureau and Bureau of Economic Analysis.
Imports for the month of March were measured at $419.0 billion, a $17.8 billion uptick from last month, while March exports hit $278.5 billion, just half a billion more than February.
The spike in imports was likely driven by companies trying to get ahead of escalating trade wars, particularly with China.
There was an increase in automotive vehicles, parts, and engines bought abroad in addition to industrial supplies and consumer goods.
Trump scaled back some of his tariffs on auto imports, which were set to take effect on May 3.