Record US Goods-Trade Deficit Implies Weaker First-Quarter GDP
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The US merchandise-trade deficit unexpectedly widened in March to a record as companies continued importing goods to get ahead of tariffs, indicating a large hit to the economy in the first quarter.
The shortfall in goods trade grew 9.6% from a month earlier to $162 billion, Commerce Department data showed Tuesday. Because imports count against gross domestic product, the data point to a weaker print when the government releases its initial GDP estimate on Wednesday and prompted several economists to downgrade their forecasts.