The US trade deficit hit a record high in March as companies front-loaded imported goods shipments to get ahead of President Donald Trump’s tariffs amid signs that more Chinese goods were being routed through third countries, analysts said.
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.
While direct shipments from China contracted considerably, analysts said the trade and related data suggested that mainland factories were scrambling to get their goods into the US through Mexico, Vietnam and other third countries,
