US Trade Deficit Hit New High in March
May 5, 2021
US Commerce Department reported the March
deficit was 5.6% higher than the February gap of $70.5 billion.
The U.S. trade deficit hit a monthly record of $74.4 billion in March, as the
improving U.S. economy boosted the purchase of foreign goods.
The March deficit was 5.6% higher than the February gap of $70.5 billion, the
Commerce Department reported Tuesday.
trade deficit — the difference between what the U.S. buys overseas and what it
sells to other countries — is a continual factor in the American economy, the
world’s largest, despite the urging of politicians, including President Joe
Biden, to buy American-made goods.
In March, imports rose 6.3% to $274.5 billion while exports increased 6.6% to
$200 billion, the government said. As usual, the deficit with China was the
largest for any single country, up 11.6% to $27.7 billion.
Last year, the U.S. trade deficit rose 17.7% to $679 billion, the highest since
2008, as the coronavirus disrupted global commerce.
Former president Donald Trump sought to narrow the trade gap by imposing taxes
on imported goods. The U.S. trade deficit narrowed slightly in 2019 but then
ballooned in 2020 as the coronavirus pandemic sharply curbed exports.