07-May-2025 08:39

The U.S. trade deficit spiked by much more than expected in the month of March, according to a report released by the Commerce Department on Tuesday.

The report said the trade deficit soared to a record high $140.5 billion in March from a revised $123.2 billion in February.

The much bigger than expected trade deficit came as the value of imports surged by 4.4 percent to $419.0 billion in March after coming in virtually unchanged at $401.2 billion in February.

The sharp increase by the value of imports partly reflected a spike by imports of consumer goods, particularly pharmaceuticals.

Imports of capital goods and automotive vehicles, parts and engines also saw notable growth, while imports of industrial supplies and materials saw a steep drop.

Meanwhile, the report said the value of exports crept up by 0.2 percent to $278.5 billion in March after jumping by 2.8 percent to $278.0 billion in February.

Increases in exports of industrial supplies and materials and automotive vehicles, parts and engines were largely offset by decreases in exports of civilian aircraft and services.

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