US Trade Deficit Hits Record Amid Pre-Tariff Surge

U.S. imports surged to a record high in March as businesses stockpiled goods ahead of President Donald Trump’s 'Liberation Day' tariffs, which took effect in April. The trade deficit in goods widened by nearly 10% from the previous month, reaching a record $162 billion, as companies sought to avoid anticipated tariff-driven price hikes. This import surge is expected to drag down first-quarter GDP, possibly pushing economic growth into negative territory. Retail inventories fell short of expectations, while wholesale inventories showed only modest gains, indicating potential overstocking by businesses. Economists expect a sharp decline in imports in coming months as higher tariffs take effect, which could signal a broader shift in U.S. trade patterns. The March data does not yet reflect the full impact of the new tariffs, which will be seen in April’s figures.