US trade deficit surged in March and China imports sank before Trump’s tariff roll-out
Companies front-loaded shipments amid signs that more goods from the mainland are being routed through third countries, official data shows
But mainland imports plummeted to their lowest level in five years and could fall further following Trump’s sharp tariff increase on Chinese goods to 145 per cent.
The trade gap surged 14 per cent to a record US$140.5 billion compared with the revised US$123.2 billion reading in February, according to the Commerce Department’s Bureau of Economic Analysis on Tuesday.
This was the largest monthly deficit on record, dating back to 1992. It was fuelled by record imports from 10 countries, contributing to the first negative US first quarter GDP in three years.
“It looks like a transshipment story,” said Lauren Gloudeman, a macroeconomic analyst focusing on China with the Eurasia Group, a consultancy.