The US trade deficit widened to a record in January as companies scrambled to secure goods from overseas before President Donald Trump imposed tariffs on America’s largest trading partners.
The gap in goods and services trade widened 34% from the prior month to $131.4 billion, commerce department data showed on Thursday. The value of imports rose 10% to a record $401.2 billion, while exports increased 1.2%. The figures aren’t adjusted for inflation.
Trump promised sweeping tariffs during the 2024 presidential campaign, and on Tuesday he handed down sweeping 25% duties on Canada and Mexico while doubling tariffs on Chinese goods to 20%. Canada and China immediately announced retaliatory measures, and Mexico is responding on Sunday.
The Jan flurry of imports was broad and included a surge in inbound shipments of industrial supplies and materials. Within that category, imports of finished metal shapes that include gold bullion jumped $20.5 billion, marking a second month of steep increases.