The United States broke a record for trade deficit in March! Companies are scrambling to import crazily before the tariffs.

Due to the imminent implementation of comprehensive tariffs by the Trump administration, companies are rushing to import goods early, leading to a record trade deficit in the United States in March. Data released by the US Department of Commerce on Tuesday showed that the trade deficit in goods and services expanded by 14% to $140.5 billion, well above the median forecast of $137.2 billion by economists. Total imports surged by 4.4% to a record $419 billion, while exports only slightly increased by 0.2%. It is important to note that these figures are not adjusted for inflation. Imports of consumer goods saw a historical increase, along with significant rises in imports of capital equipment and motor vehicles. The report reveals a last-minute rush by American businesses to stockpile goods before the expansion of tariff policy announced by Trump on April 2. The sharp expansion of the trade deficit in the first quarter directly led to the first contraction in the US economy since 2022. GDP for the period of January to March decreased at an annual rate of 0.3%, with net exports dragging down economic growth by nearly 5 percentage points, marking the largest decline in history. However, Bloomberg Economics suggests that container shipping from China to the US has decreased since April 16, indicating a tapering off of the pre-tariff import rush. As the trade deficit narrows, this could support a temporary economic recovery. Data from the Institute for Supply Management (ISM) also shows a decrease in import volumes for manufacturers and service providers, signaling that the strategy of rushing to import goods before tariffs is coming to an end. Currently, Trump is implementing a so-called bilateral fair trade policy, aiming to achieve three goals through tariffs: attracting foreign investment to the US, boosting domestic manufacturing capacity, and strengthening national industrial security systems. Tariffs are also seen as an important way to increase government revenue. The report for March shows that the seasonally adjusted trade deficit with Canada narrowed, while the deficit with Mexico remained at a high level set in February. The trade deficit with Ireland surged to $29.3 billion, while the deficit with China showed a contraction. After adjusting for inflation, the total goods trade deficit for the US in March expanded to a record $150.9 billion.