Companies are racing to get imported goods shipped before tariffs take effect, causing the trade deficit to soar.
The trade deficit soared to a record $140.5 billion in March as businesses tried to stock up on import shipments ahead of President Donald Trump’s tariffs, which are expected to spur higher prices for a wide range of consumer products.
The gap between imported and exported goods rose $17.3 billion from $123.2 billion in February, according to the US Bureau of Economic Analysis monthly report, released May 6.Â
With Trump’s pause on reciprocal tariffs set to expire in July, businesses have been scrambling to ensure they have enough product in stock before double-digit tariffs take effect. After that stock runs out, companies will need to pay more for products made outside the US, and those costs will almost definitely get passed along to consumers. Tariffs on goods from China are already hitting — China’s total tariff rate is currently 145% — and prices for some products have already risen as much as 377%.
