US trade deficit hits record high in March

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US trade deficit hits record high in March

On October 22, 2021, a file photo shows trucks waiting to load containers at the port of Los Angeles, California, the United States. The US trade deficit increased to a record high in March due to a sharp increase in imports, the US Commerce Department reported on Wednesday.

The goods and services deficit jumped 22.3 percent from the previous month to an all-time high of $109.8 billion, according to the report.

US imports increased by 10.3 percent to $351.5 billion in March, while exports grew by 5.6 percent to $241.7 billion, the report showed.

The trade balance has been widening over the past few months due to the fact that the trade balance has been more stable in the United States than in many key trading partners, Tim Quinlan and Shannon Seery, economists at Wells Fargo Securities said in an analysis.

As domestic demand for goods slows this year, the era of wildly expanding trade deficits will eventually transition to one of modest narrowing, they said.

ALSO READ: US economy shrinks at 1.4% in Q 1 due to Omicron surge.

A rise in US imports in the first quarter was a major factor in the 1.4 percent drop in gross domestic product. Net exports were 3.2 percentage points off the first quarter's GDP.