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U.S. Trade Deficit Hits Record $140.5 Billion Following Pre-Tariff Import Surge

March's 14% trade deficit increase, driven by stockpiling ahead of new tariffs, contributes to a Q1 GDP contraction as selective tariff rollbacks exclude China.

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Overview

  • The U.S. trade deficit reached an unprecedented $140.5 billion in March 2025, a 14% increase from February, according to Commerce Department data.
  • Imports surged to $387 billion in March as companies stockpiled goods ahead of reciprocal tariffs implemented on April 2.
  • The import surge significantly impacted Q1 2025 GDP, which contracted by 0.3% annually after a 2.4% gain in Q4 2024.
  • President Trump partially rolled back tariffs after their implementation, but duties on Chinese imports remain unchanged.
  • The administration defends its protectionist policies as necessary to address trade imbalances and revitalize domestic industries.