The US trade deficit widened to a record $140.5 billion in March 2025, surpassing market expectations of a $137 billion shortfall. This marked the largest monthly gap on record, driven by a surge in imports ahead of anticipated tariff hikes expected in April.
US trade gap reaches new high
Imports jumped 4.4% to an unprecedented $419 billion, reflecting increased purchases of pharmaceutical preparations, passenger cars, and computer accessories. In contrast, declines were recorded in imports of finished metal shapes, nonmonetary gold, and crude oil.
Exports, meanwhile, edged up just 0.2% to a new high of $278.5 billion. Gains were seen in shipments of passenger cars, natural gas, nonmonetary gold, and computer accessories, although these were partially offset by a drop in exports of civilian aircraft. The modest rise in exports was not enough to keep pace with the stronger growth in imports, resulting in a significantly wider trade gap.
Regional figures
Regionally, the US trade deficit grew notably with the European Union, reaching $48.3 billion compared to $30.9 billion a month earlier, with Ireland accounting for a large portion of this increase ($29.3 billion vs $14 billion). The deficit also expanded with Vietnam ($14.1 billion vs $12.4 billion), highlighting persistent imbalances with key trading partners. However, the trade gap narrowed with several countries, including China ($24.8 billion vs $26.6 billion), Switzerland ($14.7 billion vs $18.8 billion), and Canada ($4.9 billion vs $7.4 billion), suggesting shifting trade dynamics amid global economic uncertainties. The trade balance with Mexico remained relatively stable at $16.7 billion.
