Record U.S. Trade Gap Reflects Oil-Price Surge, Omicron Effects

The U.S. trade deficit swelled to a record in January, spurred by unprecedented consumer-goods imports and higher values for incoming capital equipment, and crude products, whose prices soared that month as Russia deployed troops on the border with Ukraine.

While goods imports continued their upward trajectory as businesses pushed to replenish stocks depleted by strong demand from consumers, the effects of hot prices that are plaguing economies globally were evident, Commerce Department data showed Tuesday.

Merchandise imports rose 1.8% from December to a record $262.8 billion, but they edged up just 0.1% when stripping out the effects of inflation. Similarly, exports fell 1.5%, but were down 3.9% when adjusting for prices.

The value of imports of crude — which has seen sharp price gains since Russia invaded Ukraine — climbed to $13.7 billion, near the highest level since mid-2018.

While the U.S. imported just 3% of its crude from Russia in 2021, the country was still America’s fourth-biggest source that year, and Washington’s ban on inbound shipments of fossil fuels from Russia may stoke global energy prices further, eventually feeding into inflation.

Other highlights from the report: