US trade deficit hits record high in March despite Donald Trump's tariffs

Donald Trump's protectionist economic policy is far from bearing fruit for the moment. The United States trade deficit, which the American president is trying at all costs to reduce, finally reached a new record in March, according to official data published by the Department of Commerce on Tuesday, May 6, while the previous record was set in January. The American trade balance—the difference between imports and exports—widened by 14% over one month, posting a deficit of $140.5 billion (€124 billion), the Department of Commerce reported. This figure was worse than the one analysts had anticipated, around $137 billion, according to the consensus published by MarketWatch.

Imports of goods reached a very high level, at $387 billion. This suggests that companies continued to build up their inventories to anticipate the implementation of new tariffs by the Trump administration. The report notably mentions a significant increase in imports of pharmaceutical preparations in March (+20 billion dollars in one month).

The Republican president had warned that he would announce "reciprocal" tariffs on April 2, his "Liberation Day ." The scale of the new surcharges imposed that day on products entering the United States exceeded all fears. Donald Trump has since partially reversed course , applying a global rate of 10%, except for China , where the tax is still 145% on many products .

"Companies have pre-purchased equipment needed for their operations, and retailers have stocked their warehouses with consumer goods," Wells Fargo economists summarize in a note. Going forward, "US imports will experience a dip because transactions that would normally have taken place in the second quarter or later will have already been completed," says Carl Weinberg, chief economist at HFE.

Now that the tariffs are in effect, notes Nationwide economist Daniel Vielhaber, "we expect inflation to rise, which will have the effect of slowing consumption and economic growth, which are already slowing."

This rush to import has already had a significant impact on the first estimate of gross domestic product for the first quarter of 2025, announced last week as falling by 0.3% (annualized rate), while it had increased by 2.4% the previous quarter.

Donald Trump justifies the cuts to more than half a century of trade liberalization by citing the country's widening trade deficit and the need to revitalize domestic industry. According to his theory , increasing tariffs on products entering the United States could encourage foreign companies to set up production there, which would contribute to job creation and wealth creation in the United States.

Updated: 4:58 p.m. with comments from economists