INSUBCONTINENT EXCLUSIVE:
goods trade deficit soared to $162 billion in March 2025, the largest monthly gap ever recorded.Imports climbed to $342.7 billion, up 5%
from February and 30.8% higher than a year earlier
Exports increased more modestly to $180.8 billion, a 1.2% monthly gain and 6.8% year-on-year rise.These numbers reflect the impact of
sweeping new tariffs and the business response to them
Manufacturers and retailers accelerated imports in March to get ahead of new U.S
tariffs on goods from major trading partners.The government raised tariffs to an average effective rate of 22.5%, the highest since 1909
These measures included a 20% tariff on Chinese imports, 10% on Canadian potash and energy, and 25% on all Mexican imports, automobiles,
steel, and aluminum.The policies aimed to protect domestic industries and reduce reliance on foreign goods
The data show that tariffs led to a rush of imports rather than a slowdown.U.S
Tariffs Drive Import Boom and Trade Deficit, Consumer Costs Offset by Cheaper Energy
(Photo Internet reproduction)Firms stocked up on consumer goods, industrial supplies, and capital goods before higher costs took effect
Imports of consumer goods jumped 55.5% to $102.8 billion, industrial supplies rose 37.8% to $74.6 billion, and capital goods climbed 22.2%
to $92.8 billion.Export growth remained well behind, failing to offset the surge in imports
While tariffs have raised the price level by 2.3%, translating to an average annual loss of $3,800 per household, several factors have
helped shield American consumers from real negative effects.Gasoline prices have dropped for the third straight year, with the average price
per gallon forecast to fall to $3.22 in 2025, the lowest since 2021
This decline has eased transportation costs and left households with more disposable income.Americans are expected to spend about $115
billion less on fuel in 2025 than in 2022
Food prices have stabilized, and some categories, like eggs, have seen sharp price drops after earlier spikes.Many families have adjusted
their shopping habits to manage grocery budgets, switching brands and seeking deals
especially in the energy sector, aim to reduce business costs and support lower prices across the economy
These combined measures are expected to support household budgets and consumer spending, even as tariffs increase costs on imported
goods.Export prices rose by 2.4% over the past year, driven by higher prices for capital goods and vehicles
However, this increase did not compensate for the much larger jump in imports
terms of trade with Canada and Japan improved, but fell with Mexico and the European Union.
