The United States trade deficit in goods showed a sharp increase in January, which is most likely the result of businesses increasing import volumes ahead of tariffs on corresponding shipments that potentially could form such a situation in which trade will become a drag on economic growth in the US in the first quarter of the current year.
The goods trade gap rose by 25.6% last month. The corresponding figure was recorded at the $153.3 billion mark. This information was published by the United States Commerce Department’s Census Bureau on Friday, February 28.
US imports of goods in January were recorded at the $325.4 billion mark. This indicator increased by 11.9%.
It is worth noting that the President of the United States, Donald Trump, has issued a raft of tariff orders in his first month in office.
Last Thursday, February 27, Mr. Trump announced that a 25% tariff on goods imported from Mexico and Canada would take effect on March 4 after being delayed for a month. It was also decided to impose an extra 10% tariff on products shipped from China. It is worth noting that this measure is in addition to the previously imposed 10% levy on goods imported from an Asian country.
Washington’s other duties on imports of steel, aluminum, and motor vehicles are either coming into effect soon or are in fast-track development.
US exports in January totaled $172.2 billion. This indicator increased by 2%.
Trade contributed to the growth of the United States economy by 2.3% in the fourth quarter of 2024.
As we have reported earlier, Fed’s Favorite Core Inflation Measure Hits 2.6%.
